Extra thousands on Delegat's bill

Delegat's Wine Estate - embroiled in a bitter takeover battle for Oyster Bay Marlborough Vineyards - is paying an extra $10,000 a week in interest costs until it launches a share float.

To avoid the higher interest payment on its capital notes, Delegat's had until November 15 to raise at least $40 million through an initial public offering or private investment. The winemaker now expects the IPO may come early next year.

Delegat's raised $35 million from capital notes issued in July, with a 9.75 per cent interest rate. This increased by 1.5 percentage points to 11.25 per cent on November 15.

The extra charges could amount to $525,000 over the next 12 months or roughly $1460 a day. This is on top of the approximate $3.41 million in interest it already pays note holders.

Delegat's, the country's third-largest wine exporter, is also facing mounting legal costs in a long-running takeover battle against independent businessman Peter Yealands for control of Oyster Bay Marlborough Vineyards. The toss up over Oyster Bay may have delayed the prospect of a float.

The latest news on the bitter fight for Oyster Bay came on Friday when the Takeovers Panel reversed its view on remedies to solve the dispute. The panel told the High Court that Delegat's $4 per share offer should be cancelled and the takeover should start again.

The panel changed its mind due to fundamental omissions in the target company statement sent to shareholders. The High Court will hear the panel's recommendations on November 28.