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By BRIAN MALINA; Times Leader Staff Writer
Monday, September 21, 1998     Page: 3A

WILKES-BARRE- One day after Lion Brewery directors agreed to sell the
company to President Charles Lawson and other investors, the losing bidder
insisted his company will be the next owner.
   
“This deal will never happen,” said Jim Bell, president of the
Philadelphia-based Red Bell Brewery.
    Bell, whose company offered $19.5 million Thursday for the Wilkes-Barre
brewery, said Friday he plans to file an injunction early this week to block
the sale.
   
Lawson, whose group offered $18.5 million for the brewery, said he welcomes
the legal challenge.
   
“We would be glad to argue our case,” said Lawson, who believes solid
financing persuaded Lion’s board of directors to unanimously approve his offer
the same day it received Red Bell’s revised offer.
   
“We can close the offer. Just because (Red Bell) put the offer out doesn’t
mean they can get the financing,” Lawson said.
   
Lawson and Red Bell have battled for ownership of the Lion Brewery for more
than a month. Initially, Lion signed a letter of intent to sell the brewery to
Lawson’s group, but retracted that letter when Red Bell started a public
campaign to raise awareness of its higher bid.
   
Each side revised its bid last week before the board of directors voted
again to sell to Lawson.
   
Lawson, Lion vice president Patrick Belardi and two other members of Lion
management recently formed Malt Acquiring, Inc. to purchase the brewery.
Lawson will serve as chief executive officer of Malt Acquiring. Belardi will
serve as vice president/treasurer.
   
Malt Acquiring will finance its purchase through PNC Bank and American
Capital Strategies, Lawson said.
   
Bell said his company also has secured financing to purchase the Lion
Brewery and believes Lawson’s bid was chosen because of his position with Lion
and his relationship with board chairman Donald Sutherland. Bell offered no
evidence that Lawson’s company received special treatment.