The ongoing ownership issue of Montana, New Zealand’s largest wine company, has arrived at a temporary stalemate. A stalemate because Allied Domecq Plc has more than doubled the size of its stake in the company, effectively ensuring that its competing would-be owner and present majority owner Australasian brewer Lion Nathan is unable to undertake major transactions without its approval. Temporary, because Lion Nathan may be forced to sell off some of its shareholding in Montana pending the result of a stock exchange committee investigation into its purchase of Montana shares in February. Its purchase of 34.9 million shares from Montana executive chairman Peter Mafsen has seen Allied raise its stake to 26.7% and Mafsen virtually leave the company he has run for more than 15 years. Having recently sold 7.2 million shares to Allied, his latest sale sees him around NZ$200 million better off. Lion expressed surprise at the news of the sales to Allied, but since New Zealand law requires transactions like large asset sales or mergers to have at least 75% shareholder approval, Allied’s purchase effectively nobbles Lion’s ability to take major transactions. Montana’s stalemate should last until mid June, when the stock exchange committee has its chance to turn the sale on its head for about the umpteenth time. Meantime, aware that its Australian operations are restricted to the declining beer market, Lion has announced that it is actively seeking wine acquisitions in this country.
