Further twist in grapes saga

The battle for control of Oyster Bay Marlborough Vineyards could begin again after the Takeovers Panel yesterday reversed its decision on the acrimonious takeover.

The panel told the High Court the Delegat's $4 a share offer should be cancelled and the takeover should start again.

The High Court will ultimately decide the fate of the Delegat's offer at a hearing on November 28.

Peter Yealands and Delegat's Wine Estate have been locked in a seven-month takeover battle for control of Oyster Bay.

The panel said it changed its mind because of a "fundamental omission" and the "cumulative effect of the errors" in the target company statement.

It was shown yesterday the statement contained an income-based valuation by adviser Logan Stone that was derived from 2004 financial data when new data was available.

These figures would have seen Oyster Bay valued at $51 million instead of the $45 million figure provided in the statement sent to shareholders.

Also omitted from the statement was the unencumbered value of Oyster Bay's leases, which would show the value at $90 million - twice that shown in the document.

The unencumbered value represents the vineyard's worth were it free of its long-term grape-selling contracts to Delegat's.

In October, the panel had defended its decision not to restart the takeover in the court.

It said the omitted information should be posted to shareholders instead.

Yealands said he was "heartened" by yesterday's turn of events.

"The material which came to light ... clearly indicates that Oyster Bay was worth more than Delegat's was prepared to pay for it," he said.

Yealands said this month he would offer Oyster Bay shareholders $4.50 a share for 50.01 per cent of the NZX-listed vineyard.

Oyster Bay chairman Bill Falconer said the company would await the outcome of the November 28 hearing to determine the way forward.


History

* May: Peter Yealands makes a $3.10 a share offer for control of Oyster Bay.
* June: Delegat's bids $3.20 a share.
* July: The two engage in a bidding war until both are offering $4 a share.
* August: Delegat's obtains more than 50 per cent of acceptances and celebrates the takeover win.
* September: The Takeovers Panel rules Oyster Bay's directors had contravened the Takeovers Code by omitting material information from critical takeover documentation.
* October: Delegat's applies to the High Court to review the panel's ruling. The High Court rejects the legal challenge upholding the ruling.
* November: A High Court hearing is set for November 28. The panel will recommend the takeover begin again