Yarraman rejects Evans & Tate bid

Yarraman rejects Evans & Tate bid News Wine News
  • Friday 12 January 2007

Australian wine group Evans & Tate has today turned down the takeover bid from Yarraman Winery.

The E&T board said in a statement it would not be accepting the offer ‘in its current form’. But it appeared to leave the door open for further negotiations and an improved offer.

‘Representatives of E&T have met with Yarraman representatives and raised various matters with Yarraman as matters requiring further consideration and negotiation. These matters do not enable E&T to accept the Offer in its current form,’ the statement said.

The statement was issued in response to AAP (Australian Associated Press) which reported today that E&T was likely to accept the bid.

AAP said, ‘Yarraman Winery Inc has given a strong indication that beleaguered Australian wine maker Evans & Tate Ltd will accept its US$20m (AUS$25.17m) takeover offer.

Yarraman North America director Bill Middleton said that ongoing talks this week with the Evans & Tate board, which will continue into the early part of next week, were ‘progressing very well’.

‘Neither of us has seen any insurmountable obstacle to proceeding to a transaction at this stage,’ Mr Middleton told AAP.

US-listed wine group Yarraman declined to comment on rumours that multinational GE Money is the debt financier behind its play for Evans & Tate.

Through a conditional sale agreed on 21 December 2006 Yarraman Winery holds 19.9% of E&T’s shares. This stake was acquired from Grape Expectations Pty Ltd, a company controlled by Franklin Tate, the ex-chairman of E&T. However, the deal will be off if the takeover is not successful.

Decanter Events Pictures

Decanter Events picture galleries: still photos by Decanter's professional wine photographers of Decanter Events. Decanter runs more than 6 wine events a year, including our three yearly Fine Wine Encounters, now in their 14th year. Other events inlude our series of hugely popular 'Taste of...' events, and regular trade and consumer tastings

Related Topics