Montana drama brings new twists and turns

By Phil Boeyen, ShareChat Business News Editor

Friday 15th June 2001

The fate of Lion Nathan's (NZSE: LNN) disputed Montana (NZSE: MON) shareholding is to be decided by the Montana standing committee.

The decision to hand over the judgement to the committee comes at the same time as a fresh allegation of default arising out of the battle for Montana.

Lion has already been found in default because the timing of certain share purchases in the winemaker in February breached NZSE listing rules.

However the committee which listened to the arguments put forward by both Lion and rival bidder Allied Domecq could not decide how many shares Lion should forfeit.

The market surveillance panel says it will now ask the standing committee to determine the size of Lion's penalty.

"...the panel emphasises that its decision to deal with the matter in this way should not be seen as any commentary on the independence or competence of the independent directors of Montana.

"In fact, the panel commends the way in which the independent directors of Montana have dealt with matters to date, and is mindful that they were likely to pursue the process now decided upon."

The panel says it may propose that additional personnel join the standing committee, which comprised former judges Sir Duncan McMullin QC and Sir Ian Barker QC, and senior Queen's Counsel William Wilson.

The committee will also be asked to decide whether it should hear a second allegation of default in relation to buying of Montana shares.

"The panel has also received a new allegation of default arising out of share buying activity by another participant in the same contested takeover," says the Market Surveillance Panel in a statement.

"The panel notes that there is dispute between the parties as to whether the new allegation has any foundation and should therefore be heard."

No details of the parties have yet been disclosed.

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