Delegat's matches bid by Yealands

Delegat's Wine Estate yesterday raised its bid for Oyster Bay Marlborough Vineyards for the second time, matching a rival offer from businessman Peter Yealands.

Delegat's raised its bid to $3.50 a share from $3.35 as it strives to head off Yealands and raise its cornerstone 32.58 per cent shareholding to 50.1 per cent.

The bidding war began in May when Peter Yealands Investments offered $3.10 a share for a minimum of four million shares as the Yealands' company sought to lift its 6.7 per cent stake to 51.1 per cent.

Delegat's, a subsidiary of Delegat's Group, countered on June 8, initially offering $3.20 a share. Yealands topped this on June 29, raising his offer to $3.25 a share.

Delegat's then lifted its bid to $3.35 on July 6, but Yealands increased his offer to $3.50 last Thursday.

An independent adviser's report by Ferrier Hodgson on behalf of Oyster Bay's independent directors values the company in a range of $2.39 to $3.15 a share. Oyster Bay shares fell 2c to $3.46 yesterday.

Oyster Bay posted a $1.2 million profit in the year to June 30, 2004, versus a loss of $380,000 in 2003.

Delegat's formed Oyster Bay in 1999 and is contracted to buy all grapes produced for at least 20 years.

Meanwhile, the Takeovers Panel said it would take no action over a complaint by Oyster Bay's independent directors over the possible sale of Oyster Bay shares by Peter Yealands Investments after its offer closes, but before the transfer of shares, if the offer succeeds.