Weekend hearing for Lion Nathan penalty

By Phil Boeyen, ShareChat Business News Editor

Tuesday 19th June 2001

The Montana (NZSE: MON) standing committee will consider submissions this Saturday to decide how many shares Lion Nathan (NZSE: LNN) should divest as a defaulter in February's Montana raid.

The standing committee - made up of Sir Duncan McMullin, Sir Ian Barker QC and Bill Wilson QC - will also consider whether any transfer of shares will remedy the default.

Two weeks ago the standing committee found that Lion's broker, Credit Suisse First Boston, had arranged a number of share transfers in February which breached listing rules.

Liquor giant Allied Domecq, which wants to takeover the winemaker, says Lion should be forced to sell more than just the 10% stake acquired in pre-midnight trades on the evening of February 8.

However Lion disagrees.

Allied currently holds 26% of Montana and Lion 61%.

The result of Saturday's hearing could decide which of the two companies, who have now been battling over Montana for four months, will gain the upper hand.

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