Delegat's bounces back with $4 Oyster Bay bid

Delegat's yesterday matched Peter Yealands' offer for Oyster Bay Marlborough Vineyards in the tit-for-tat takeover battle that has had investors salivating.

Delegat's said its wholly-owned subsidiary, Delegat's Wine Estate, had increased the offer price under its partial bid to $4 a share.

The new price is also offered to shareholders who had accepted Delegat's earlier, lower, offers.

Last Friday, Yealands upped his bid for the winemaker from $3.60 to $4 in what was described as a "king hit". The $4 price is double what shareholders paid when the stock was floated in 1999.

Delegat's, seeking 1.6 million shares, has matched or bettered Yealands' bid since launching its counter-bid early last month.

The independent valuation range for the shares was set a "base case" price of $3 and the $4 offer represents a 32 per cent premium.

Yealands has about 14 per cent of OBMV while Delegat's has just under 40 per cent.

- NZPA