Takeover battle for Oyster Bay opens in high court

The battle for Oyster Bay hit the High Court in Wellington today, with Delegat's Wine Estate appealing against a ruling by the Takeovers Panel which stalled its takeover bid for the company.

Last month the panel ruled that Oyster Bay's target company statement did not provide shareholders all relevant information about the market value of Oyster Bay's vineyards.

To remedy the matter, the panel ruled that Oyster Bay should provide the information to shareholders who could then revoke their acceptances of the Delegat's bid.

The target company statement said the vineyards were worth $45 million, taking into account long-term supply contracts Oyster Bay has with Delegat's.

This valuation was challenged by rival bidder Peter Yealands, who contends that the vineyards could be worth as much as $90m if the Delegat's contracts are left out of the equation.

National Radio reported that lawyers for Delegat's told the High Court this morning that Mr Yealand's valuation was speculative, had little chance of being realised and shouldn't have been taken into account by the Takeovers Panel.

They argued that Oyster Bay was extracting the maximum value from its vineyards.

The Takeovers Panel wants the court to uphold its direction that shareholders be given a chance to rethink their decision to sell.

The case is continuing.

- NZPA