L. Nathan says deal near

Press, 19 December 1989, Page 26

L. Nathan says deal near

PA Wellington Auckland-based brewer, Lion Nathan, says it has been told by the Australian Treasurer, Mr Keating, that embattled Bond Corp Holding’s brewing assets will not be allowed to be sold outside Australasia providing there is a credible alernative. “The feedback that we've had directly is that it would be exceedingly difficult for any outside buyer to buy those breweries providing there is a credible alternative,” Lion chief executive, Mr Doug Myers, said. “I’ve spoken to his (Keating’s) office and that was confirmed.” Lion is attempting to buy into Bond Corp’s

breweries. Mr Myers told Lion Nathan shareholders that Lion still sees itself as front runner among those interested in buying the breweries. “At this point in time we are still the only suitor to have passed all the hurdles — due diligence, FIRB (Federal Investment Review Board), TPC (Trade Practices Commission) — the only one remaining is Bond himself. I am even more confident . than three months ago that ultimately we will succeed,” he said. Lion agreed with Bond in September to buy the breweries for sAust2.s billion after Bond first sells them to Bond’s 58 per cent-owned Bell Re-

sources. Share analysts said the suitors for the breweries include New Zealand’s Magnum Corp, Malayan Breweries, AnheuserBusch Companies Inc and Heineken NV. Lion’s negotiator with Bond, Mr Mike Smith, said after the meeting that Lion was still negotiating for a joint venture with Bond. “We’ve stopped imposing deadlines on ourselves. We still think it’s a venture worth pursuing.” Mr Myers told journalists that since negotiations began with Bond in September there have been six different deals but the main elements, including price, have remained the same.

Mr Myers said Australian authorities did not want Bond’s breweries, which include Castlemaine, Swan and Tooheys and have around 40 per cent market share, broken up for competitive and political reasons. “If it meant that Carlton was left in a position with an ability to pick every small brewery off, that’s hardly likely to excite a Labor government when the head of the Carlton brewery is treasurer of the Liberal Party,” Myers said.

Carlton is owned by Elders IXL, whose chairman is Australian Liberal Party treasurer, Mr John Elliott.