Action in case of sour grapes

Marlborough businessman Peter Yealands last night confirmed he has asked the Takeovers Panel to take legal action which may grant him a rematch against Delegat's for control of Oyster Bay.

Last Friday, in a landmark first judicial test of the panel's powers, the High Court upheld the panel's request for interim restraining orders, preventing Delegat's from completing the takeover of the NZAX-listed vineyard this week.

Two months ago, the takeover looked like a done deal after a bitter five-month battle.

But the panel, Yealands and major Oyster Bay shareholder David Rankin believed Oyster Bay should have given shareholders extra information that valued the vineyard at twice the amount indicated in its target company statement.

On Friday in the High Court at Wellington, Justice Forrest Miller concluded: "The panel was entitled to conclude that such information might reasonably be expected to be material to shareholders."

Yesterday, Yealands said he would be "submitting courses for a re-run and I presume there will be another hearing. There's a lot more going to happen this week. It's far from all over".

Yealands said on Friday he asked the panel to seek another court hearing that would allow bidding for Oyster Bay to begin again.

Should he get his wish, he was not expecting a swift resolution. "It's been going for five months and I expect it will still be going after Christmas."

If successful in gaining control of Oyster Bay in a second round, Yealands said he did not believe he would be able to overturn the vineyard's long-term supply contracts with Delegat's.

But he could help Oyster Bay negotiate better prices for its grapes, to the benefit of other shareholders.