By DITA DE BONI
The Stock Exchange says problems some Montana shareholders had selling shares to Lion Nathan this week were caused by administrative errors by brokers.
On Thursday night, a group of Montana shareholders who had sold shares to Lion Nathan for $4.65 apiece were telephoned with the bad news that they had actually sold far fewer than the number detailed in their contract note - sometimes only half as many.
Yesterday, Stock Exchange chief executive Bill Foster admitted that there had been some difficulties and said he had held talks with brokerage firms over the way in which share orders had been fulfilled.
He said difficulties had been compounded by some firms not following the rules for Lion's stand in the market.
When the suspension on trading in Montana shares was lifted on Monday and shareholders scrambled to sell to Lion Nathan before the brewer reached its desired 51 per cent, brokerage firms had to electronically transmit their orders.
Each shareholder could sell up to a maximum of 5000 shares and needed a shareholder validation number accompanying their order.
It was the first time the Stock Exchange identified orders at the individual shareholder level, rather than allocating blocks of shares to brokers who would then allocate them.
It is understood that some of the brokers did not put in the validation or "holder" numbers, therefore invalidating some orders.
A spokesman from JB Were said a system incompatibility was behind the problem.
He said just over 100 JB Were clients were affected, but said none had lost money as a result of their contract notes being altered retrospectively.
Herald Online feature: Montana takeover
Sale problems blamed on brokers
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