Vineyard takeover squabble deepens

The spat between bidder Peter Yealands and Oyster Bay Marlborough Vineyards' independent directors has deepened.

After initially saying it was not an issue to be aired in the public domain, chairman Bill Falconer released a statement denying Oyster Bay's independent directors were refusing Yealands information.

Yealands and rival Delegat's Wine Estate are mired in a tussle for control of the Marlborough grape grower, repeatedly outbidding each other to now sit level on $3.60 a share.

Falconer said Yealands had been sent a confidentiality agreement this week that if signed would grant him access to the documents he was seeking. Yealands did not sign.

"As the independent directors indicated to Yealands yesterday, we are happy to share this data if he signs the confidentiality agreement, ensuring the company's right to protect commercially sensitive agreement," Falconer said.

Yealands is pursuing disclosure of documents through the court and wants a hearing as soon as possible.

He wants information relating to the grape volumes for each variety produced by Oyster Bay, quality and brix (sugar content) levels, and details of prices paid by Delegat's.

His camp claims that information is pertinent to his making a decision on whether to raise his bid and because Delegat's already had access, he should be put on a level footing.

Yealands has said he has been "stuffed around" trying to get the information and so is taking legal action.

Yesterday he said he was advised not to sign the agreement because it was so heavily weighted against him.

"The confidentiality agreement provided that I could see this information but could not tell other shareholders about it."

He said that because the independent directors had raised the confidentiality agreement's existence he would post it on his website (www.obtakeover.co.nz) so people could make up their own minds about it.

He also dismissed Falconer's comparison with Oyster Bay's contractual arrangements with Delegat's to the rest of the market.

Because Delegat's is Oyster Bay's sole customer, there would be no problem in one customer and another comparing prices.

"Talk about there being competitive commercial reasons for non disclosure is nonsense," he said.

Delegat's yesterday lifted its holding to 37.04 per cent. Oyster Bay's shares closed at $3.42, up 12c.

- NZPA