Lion hurries up Petaluma investors

By Phil Boeyen, ShareChat Business News Editor

Thursday 1st November 2001

Lion Nathan (NZSE: LNN) is promising speedy settlement to shareholders in Adelaide-based winemaker Petaluma who accept the brewing company's takeover bid.

The promise comes as the offer goes unconditional after Lion received regulatory approval under Australia's Foreign Acquisitions and Takeovers Act.

Lion initially offered A$7.00 a share for the company, a 40% premium over the pre-bid closing price of A$5.00 per share, but it later sweetened the price to A$7.20 on concerns that Allied Domecq would muscle in on the act.

LNN says shareholders who accept the current offer will receive a dividend-adjusted payment within three business days of receipt of their valid acceptance and shareholders who have already accepted will be paid by early next week.

CEO, Gordon Cairns, says Lion is now entitled to over 56% of Petaluma.

"The board of directors of Petaluma has unanimously recommended that Petaluma shareholders accept the offer as soon as possible. I strongly encourage Petaluma shareholders to accept the offer as soon as possible to ensure prompt payment to you".

Lion is keen to build a wine business to emulate other brewers such as Fosters, although there have been concerns that it is paying too much for Petaluma.

The company fought a long battle this year with Allied Domecq for New Zealand winemaker, Montana. Allied eventually won control although Lion walked away with more a gain of around $127 million.

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