Winemaker Delegat's has upped the ante in the bidding war for Oyster Bay vineyards, today raising its offer to $3.35 a share.
That is 15c higher than its first offer, made on June 17, and trumps a $3.20 per share rival bid by Peter Yealand Investments Ltd (PYI).
Oyster Bay
is asking investors to hold fire while it considers the new offer and issues an independent adviser's report.
PYI, the investment vehicle of grape grower Peter Yealands, owns 6.7 per cent of Oyster Bay and is seeking to raise its stake to 51.1 per cent, while winemaker Delegat's wants to increase its existing 32.58 per cent stake to 50.1 per cent.
Independent valuer Ferrier Hodgson last month valued Oyster Bay Marlborough Vineyards at between $2.39 and $3.15 per share. Its "base case" valuation was $3.02 per share.
Mr Yealands, who has extensive contract grape growing interests, wants to secure the company to give him more certainty.
He currently sells his harvest on the spot market. Delegat's formed Oyster Bay in 1999 and is contracted to buy all the grapes produced on the estate for at least 20 years.
Shares in Oyster Bay traded up 10c at $3.30 on the news -- a fresh year high.
- NZPA
