The Australian wine company, Peter Lehmann Wines (PLW), has said that three of its independent directors are recommending shareholders accept the A$3.85-per-share bid lodged by the UK wines and spirits group, Allied Domecq Plc, yesterday.
Three of the company’s four independent directors, chairman Richard England and directors Neil Lister and Harold Tilley, have recommended the Allied Domecq bid in the absence of a higher offer. However, the fourth independent board member, Robert Edwards, has not backed the Allied bid.
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The two remaining directors, Doug Lehmann and Roger Wilson, have also not recommended the Allied bid and are thought likely to follow the same course as Peter Lehmann himself who is known to be against the Allied bid.
PLW also said that the Allied bid price would be unlikely to reach its upper limit of A$4.00-per-share given that this was contingent on acceptances being gained for 90% of the shares and Peter Lehmann retains a 10.5% stake in the company.
