Multinational drinks group, Allied Domecq, has announced it has raised its holding in Australian wine company, Peter Lehmann Wines Ltd, to 5.4%, prompting speculation about a possible takeover bid. The UK-based group confirmed the news in a statement to the Australian Stock Exchange.

Last year, Allied Domecq won control of the New Zealand wine company, Montana Wines, in a NZ$1 billion ($430 million) takeover, beating international brewing force, Lion Nathan, to the prize.