Delegat's confident on Oyster Bay despite panel's ruling

Delegat's wants Oyster Bay Marlborough Vineyards (OBMV) independent directors to quickly comply with a precedent-setting Takeovers Panel ruling in order to allow its takeover bid to close.

In the first decision of its kind, the panel said on Thursday OBMV independent directors had not complied with the Takeovers Code by leaving out information in its target statement that might have been critical to shareholders considering Delegat's offer.

Oyster Bay will now have to provide the market value of its freehold and leasehold vineyards.

The panel did not annul Delegat's bid completely, as rival bidder Peter Yealands' camp had hoped.

Delegat's managing director, Jim Delegat, said he was confident providing the relevant information would result in the successful completion of his winery's offer.

The panel ruled OBMV shareholders could revoke their acceptances of the Delegat's offer after receiving the new information.

They would not, however, be given the opportunity to consider Yealands' now expired offer, which adviser Bruce Hancox said would likely have been increased from the $4 a share on the table.

Yealands said the panel's decision was not a "closed door".

He said it was "a very strong possibility" the panel might rethink its decision and ask Oyster Bay to redo the whole takeover process.

"I believe the panel will have no choice but to let this rerun and if it's not able to rerun, then we will look at other avenues," said Yealands.

OBMV chairman Bill Falconer said the company would comply with the ruling, but he was surprised and disappointed by the decision.

"The information they were talking about, in my view, was not material, and would not have influenced shareholders in making their decision," said Falconer.

The panel has yet to release its reasons for the ruling. The panel estimates the process it has set out could take over a month.