The Hess Group, which is in a takeover battle for Peter Lehmann Wines with Allied Domecq, has written to shareholders of the Australian wine group to convince them to accept its A$3.85 a share offer.
Hess’s bid has been accepted by the independent directors of PLW, despite it being lower than the rival bid from Allied Domecq, on the reasoning that Allied’s bid had too many conditions attached.
In the Hess letter, which was released yesterday and is accompanied by an independent directors’ recommendation, Hess chairman and chief executive Max Lienhard hinted that his company could increase its offer once again. “In the event you have accepted our offer on the previous acceptance form, you will still be paid A$3.85 per Peter Lehmann Wines share, together with any increase if Hess decides at any stage to increase its offer,” he said.
“We are also pleased to advise you of your independent directors’ recommendation that you accept the Hess offer for all your Peter Lehmann Wines shares but that you wait until closer to the end of the offer period before doing so.”
