By Geoff Senescall
Guinness Peat Group has dipped further into its war chest, this time taking a sip of a larger target, Montana Group.
So far it has only just broken through the substantial-shareholder threshold by moving its holding to 5.14 per cent.
But Montana, New Zealand's largest wine company, has long been
viewed as a takeover target.
Recent speculation has centred on the Australian companies Foster's Brewing and Southcorp, as well as the New Zealand company Lion Nathan, as suitors.
Analysts say the most likely buyer would be Foster's, which is sitting on a huge war chest, has investments in wine and wants to invest in growth assets.
Montana fits this bill perfectly, they say.
So far, however, Montana chairman Peter Masfen has resisted the temptation to sell his key 20 per cent holding, in spite of approaches.
Analysts do not expect GPG to sit quietly at 5.14 per cent. While most brokers have buy recommendations on the stock, GPG's most likely ploy would be to force some resolution on Montana's ownership.
GPG, sitting on around $500 million in cash, easily has the capacity to lift its holding.
But its New Zealand chief, Tony Gibbs, would not comment on this latest move.
But it comes as the corporate raider is embroiled in several other corporate skirmishes in New Zealand, including Wrightson and Otter Gold.
Montana, with market capitalisation of $438 million, is by far GPG's largest known current play. So far GPG is understood to have spent $21.18 million on Montana shares.
