Masfen farewells Montana stake

By Phil Boeyen, ShareChat Business News Editor

Friday 25th May 2001

Montana chairman Peter Masfen has sold the remainder of his holding in the company to Allied Domecq for $167.5 million.

The sale is at the same price - $4.80 per share - that Mr Masfen received last week from Allied Domecq, which allowed the UK-based liquor company to reach a 10% strategic stake in the winemaker.

Last week's sale reduced Masfen Holdings' stake to 16.29% from 19.95% previously, and the rest of the shares were put through the market this morning.

The sale lifts Allied's holding to around 27%.

Mr Masfen has continually held out for an improved price for Montana after Lion Nathan first announced its intention to acquire 100% of the company last November.

Lion initially offered between $3.20 and $3.80 but a first appraisal report put the fair price between $4.16 and $4.64 per share.

Lion claimed that price was overambitious but it recently paid $5.05 per share to increase its holding.

Peter Masfen says the decision to sell the shares was made taking into consideration that all Montana shareholders had had a number of opportunities to sell their shares in recent times at prices equal to or in excess of the fair value as determined by the appraisal report.

The latest sale leaves Montana majority held by Lion with around 62% compared to Allied's 30%.

However a decision on whether Lion may have to divest some of its holding is still in the balance.

A committee has been investigating if the acquisition of some Montana shares by Lion in February breached exchange rules, and if so what will happen to those shares.

The possibility has been raised that Allied could bid for the holding.

There is no love lost between the two companies following the long-running battle for control of the country's biggest wine concern.

Allied had its first attempt at a takeover snatched out of its hands by Lion's February raid on the company, while Lion has described Allied's continuing push for a stake as unwelcome.

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