Allied ups bid for Australian winemaker

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Allied Domecq (A-D) has raised the stakes in its battle for control of Peter Lehmann Wines, upping its bid to A$4.00 per share, which values the...

Allied Domecq (A-D) has raised the stakes in its battle for control of Peter Lehmann Wines, upping its bid to A$4.00 per share, which values the Australian business at more than £60m.

A-D, the biggest shareholder in the business, is up against Swiss drinks group Hess, which sparked the bidding war with an agreed A$3.50 bid in mid-September. Hess has already equalled Allied's counterbid, prompting the latest offer from the global drinks giant.

Company founder Peter Lehmann, who holds around 5.4 per cent of shares compared to Allied's 15.4 per cent, has vocally opposed A-D's involvement in the business all along, fearing his brand will be lost in the global operation.

However, other directors are thought to support the latest A-D bid and are pressing for a withdrawal of the recommendation of the Hess offer. A-D has also dropped a condition that it want acceptances totaling at least 90 per cent of shares, and said it would honour the deal if it gets at least 51 per cent, "regardless of whether Mr Peter Lehmann accepts the offer, or sells to another person who accepts."

Allied Domecq chief executive Philip Bowman said: "We remain committed to maintaining the principles of quality and local autonomy and identity, which have built the Peter Lehmann Wines brands into the successes that they are today.

He added: "We are convinced that it is far more desirable for PLW shareholders to achieve an attractive price for all of their shares - a price that recognises and values the successes of the company - than to accept partially the Hess offer and be locked in as minority holders in a company controlled by a privately-owned group."

Related articles:

Allied launches counterbid for Australian wine producer (22 September 2003)

Allied mulls bid for Australian wine group (9 September 2003)

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