Panel asks court for more disclosure from Oyster Bay

The Takeovers Panel yesterday asked for an urgent court hearing seeking orders that Oyster Bay shareholders should decide whether Delegat's takeover offer for the vineyard should stand or fall.

The panel said it had filed an application to the High Court at Wellington seeking orders requiring Oyster Bay to distribute a correcting statement to shareholders who had accepted Delegat's $4 a share proportional takeover offer.

The orders would require the statement contain additional information valuing the vineyards at as much as $90 million, twice the value given in Oyster Bay's original target company statement. The panel also wants shareholders who had accepted Delegat's offer to have 14 days to reconsider their decision armed with the information.

If acceptances remained above 50.1 per cent at the end of the process, Delegat's offer will stand and it will start paying out shareholders. But if sufficient shareholders revoked their acceptances, leaving Delegat's short of control, it's game on again.

The panel's move comes less than a week after Delegat's rival for control of Oyster Bay, Marlborough businessman Peter Yealands, and major shareholder David Rankin asked the court to cancel or void Delegat's offer so that the five-month takeover battle could begin anew. Yealands, who has said the legal battle could drag on until next year, is also suing Oyster Bay for damages.

But the panel will be submitting to the court that restarting the takeover process is not warranted. The panel expects Delegat's and Oyster Bay will consent to the orders it is seeking. Both have indicated they are willing to co-operate.

The panel seeks an urgent court hearing to settle the matter quickly.

Oyster Bay will hold its annual general meeting on November 25.

"It is important that control of voting rights is clearly established before that meeting," the panel said.