The Australian brewer Lion Nathan has suffered further blows in its hopes to beat the British liquor group Allied Domecq and to regain a controlling stake in New Zealand's winemaker Montana, reports the Financial Times .
On July 17, the Takeover Panel extended by a further 21 days the period during which Lion is not allowed to buy shares in Montana.
The panel ruled against an intended offer from Lion to buy Montana shares at two different prices, saying this did not comply with the new code.
The day before, the special standing committee of the New Zealand Stock Exchange's market surveillance panel ruled that Lion was attempting to circumvent conditions imposed last month when it was ordered to forfeit a 19 per cent stake in Montana.
The committee had decided that Lion was to sell the shares to unrelated parties with no conditions attached.
In its latest ruling, the committee effectively said Lion was breaching this condition.
Allied Domecq spokesperson Jane Mussared welcomed the decisions, both of which followed complaints from the UK drinks company that is in the throes of a NZ$ 1bn battle for control of the wine company.
"We concur with the decisions and will make further announcements in the next couple of days when we put our own offer to buy Montana shares in train."
The rulings raise further confusion over how Lion Nathan will respond to protect its position.
The two committees have essentially said Lion was going the wrong way about unwinding its previous errors.
The decisions suggest Lion cannot have an offer in place when it sells the 19 per cent stake in Montana that it is being forced to quit as a penalty for an earlier misdemeanour in February.
Allied Domecq is due to mount its own bid for Montana shares at NZ$4.80 a share from Thursday.
This offer is being sent to the remaining 11 per cent of shareholders who have not already sold.
This gives Allied Domecq the opportunity to buy while Lion is forbidden to do so.
It also suggests that it will be in a position to buy the forfeited 19 per cent holding from Lion when it becomes available.
However this would still give Allied Domecq only 46 per cent of Montana, 4 per cent less than it needs for its bid to go unconditional.
After the forfeit of its shares, Lion will have 44 per cent stake.
A Lion spokesman said his company would not comment until it saw the full details of the standing committee's reasoning.