The eagerly awaited investigation into whether brewer Lion Nathan broke New Zealand Stock Exchange rules when it took a controlling stake in Montana Group in February has been delayed.
Although the market surveillance panel said last month that a standing committee would hold hearings yesterday, todayand tomorrow, the Business Herald understands the hearing did not begin yesterday and may not proceed until late next month.
Panel spokesman Philippe Leloir last night refused to confirm or deny a delay. But Montana company secretary John Nuthall said the only event this week would be a meeting tomorrow of legal counsel for the interested parties - including stymied bidder Allied Domecq, Lion Nathan and its broker Credit Suisse First Boston, and Montana Group - to consider the committee's progress in gathering evidence.
It is understood that some information, including tapes and transcripts of conversations between brokers and institutional buyers, has not been collected, and could delay the hearing until May 21.
That information is vital to establishing whether Lion Nathan solicited sellers before it was allowed to under a waiver granted by the panel.
Montana non-executive director Barry Neville-White said the delay was frustrating, "but we'd rather they got everything they needed and made the right decision than the wrong one."
Allied Domecq spokeswoman Jane Mussared agreed, saying the company insisted on full disclosure of all information. "The stockbroker tapes are fundamental to the case."
Meanwhile, a flurry of trading in Montana shares over the past fortnight can be attributed mainly to financial year-end "window dressing," say market analysts.
The combination of extra capital in the equity markets from the sale of Fletcher Energy to Shell Apache, as well as a typical reshuffle of stocks to mark the financial year-end, is thought to be behind recent trading.
Around 5 per cent of the company has changed hands in the past fortnight.
