NZ: Oyster Bay eyes the end of takeover saga

By just-drinks.com editorial team | 30 November 2006

The chairman of Oyster Bay Marlborough Vineyards believes that the end of a costly takeover battle for the New Zealand wine group is within site.

According to a report from the New Zealand Press Association today (30 November), a takeover battle between entrepreneur Peter Yealands and Delegat's Wine Estate for control of the company has cost Oyster Bay NZ$1.64m (US$1.12m).

The company was hit by $1.43m in costs associated with the takeover and related complaints and another $209,000 in costs associated with an appeal to NZX Discipline.

At the company's AGM, chairman Bill Falconer said: "As a practical matter most of the costs have already been expensed and I would not expect the final outcome to have material impact on our earnings for the current year. The important point is that this lengthy saga must be brought to an end so we can get on with building the business, and making sure that shareholders are well rewarded into the future."

Oyster Bay has settled the outstanding costs and compensation from the takeover offers with shareholder David Rankin and the Takeovers Panel. However, it is still in negotiations with Peter Yealand, who had accused Oyster Bay of holding back information on vineyard value during the takeover struggle.

Sectors: Wine