Yealands to sue Oyster Bay and Delegat's for winery

Peter Yealands is suing Oyster Bay Marlborough Vineyards and Delegat's Wine Estate in a new attempt to snatch control of the contested winery.

Oyster Bay informed the New Zealand Exchange yesterday that it had received a statement of claim from Yealands.

In the suit, Yealands is seeking to crush Delegat's partial takeover of Oyster Bay or to have Delegat's permanently restrained from completing its offer to shareholders.

He is also suing Oyster Bay for financial damages. Oyster Bay has said it will strongly defend itself.

This is the latest move in a five-month battle for control of the vineyard between Oyster Bay's first- and second-largest shareholders, Delegat's and Yealands.

The Takeovers Panel's powers were first tested last Friday when Delegat's appealed its decision in the Wellington High Court. The court upheld the panel's request for interim restraining orders.

Last month, the panel found Oyster Bay directors had contravened the Takeovers Code by omitting material information from a takeover document sent to shareholders. The new information shows that without Oyster Bay's long-term grape selling contracts to Delegat's, its value would double to $90 million.

Oyster Bay said the panel's preferred solution was for shareholders to decide whether to revoke their acceptance of the Delegat's bid after getting the new information.