I think Tim and Wulf have it right here. The question is, who's round is it, and what is their attempted action?
If it's the turn of the guy unfurling the banner, it doesn't matter what the guy trying to stop him is doing. He is unfurling the banner, and follows the rules for that. The guy trying to stop him is too late, unless he uses APs to go first, in which case he can try and interfere.
I can think of several ways to do that - a simple contest to wrench the banner out of the other guy's hands to stop him unfurling it, or an attack against the other guy's APs as Tim (I think) suggested, so he has none left to transfer. If those actions fail, your guy gets a chance to unfurl the banner and lend APs - the guy trying to stop him has had his chance.
Simon
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