Allied Domecq has launched a £369m bid for Montana, the New Zealand producer of wines such as Marlborough Sauvignon Blanc, in an effort to expand its wine interests. However, Lion Nathan, the Australasian brewer has topped the offer. Meanwhile Diageo, the world's biggest spirits company, could be headed for another clash with Allied Domecq in a $1.2bn bid battle to acquire Kendall-Jackson, a Californian wine producer.