Lion Nathan gets wine prize - at last

By Phil Boeyen, ShareChat Business News Editor

Thursday 15th November 2001

Lion Nathan (NZSE: LNN) will move to compulsory acquisition of the remaining shares in Adelaide wine group Petaluma after gaining 93.5% of acceptances in a takeover offer.

The brewing company has been aching for a wine business to add to its portfolio after Montana slipped through its grasp in a drawn out battle with Allied Domecq.

Despite losing the company the brewer did pocket a tidy profit post-tax gain of A$64.9 million after selling its Montana stake, giving it more cash to fund its wine strategy.

Not long after Lion began its first bid for Petaluma at A$7 a share there were market rumours that Allied may once again step in and spoil the game.

However Lion upped the ante a further 20 cents to A$7.20 per share, taking its offer to a 44% premium over Petaluma's closing price of A$5.00 a share prior to the bid.

Lion says its offer for Petaluma will close on Monday night and is again urging shareholders who have not yet taken the offer to get their acceptances in before then to ensure payment with three days.

The brewer also has a bid in for another Adelaide wine business, Banksia Wines, at a price of A$1.15 cents per share.

Spokesman Warwick Bryan says the company has had acceptances of around 22%. The offer was due to close on November 19 but has been extended until December 3.

The Banksia offer is conditional on 50.1% acceptance.

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