Lion Nathan has extended its takeover bid for Banksia Wines to December 31st according to a report by Dow Jones.

Lion Nathan, which has 74.47% control of Banksia was due to close its A$1.12cash a share offer today.

However, UK drinks giant Allied Domecq, which acquired a 14.9% share of Banksia will be the biggest hurdle to Lion acquiring 100% of the company.

Allied has previously said that it does not intend selling the stake, because it wants to protect its distribution deal with Banksia.