Evans and Tate, Yarraman continue to jostle over merger...

Evans and Tate, Yarraman continue to jostle over merger
19-February-07 by AAP

United States-listed predator Yarraman Wines Inc today vowed to continue its fight to merge with troubled Australian winemaker Evans & Tate Ltd as the two companies jostled over a possible deal.

On Friday last week, Evans & Tate received a second revised takeover offer from Yarraman, which prompted a counter offer from Evans & Tate.

Another offer was made from Yarraman, today.

But no details of the latest move by Yarraman were made available.

"A response constituting a counter offer has been received from Yarraman, which Evans & Tate will immediately consider," Evans & Tate said today.

Yarraman made its original offer in December, a revised offer on February 1 and a second revised offer on February 16.

The second revised offer increased the enterprise value placed upon Evans & Tate to $148.3 million - up $6.6 million from the offer of February 1.

Under the second revised offer - the ANZ Banking Group, to which Evans & Tate owes $90 million - would receive $80 million in cash and $17.3 million in unlisted convertible, redeemable preference shares in discharge of its principal debt.

Under the offer of February 1, Yarraman was to pay ANZ $80 million in cash and $10.7 million in an Australian Stock Exchange-listed Yarraman security acceptable to the bank.

After receiving the second revised offer, Evans & Tate made a counter offer to Yarraman that added some conditions to the Yarraman proposal.

They included the resolution of the continuing funding requirements of Evans & Tate before any deal with Yarraman, and satisfactory due diligence by both companies.

Due diligence by Evans & Tate would include the verification of Yarraman's available debt, and equity funding for the proposed transaction and its forecasts.

Under the offer of February 1, Yarraman will offer one of its shares for every 6.75 Evans & Tate shares, equivalent to 26.5 cents per Evans and Tate ordinary share.

Yarraman's original offer, which was rejected by Evans & Tate, offered one Yarraman share for every nine Evans & Tate shares.

Evans & Tate shares closed two cents lower at 17.5 cents today.

http://www.wabusinessnews.com.au/en-story.php?/1/49015/Evans-and-Tate-Yarraman-continue-to-jostle-over-merger-/dba