yarraman to make fresh bid for e and t

20-July-07 by Julie-anne Sprague

The Australian arm of US-listed Yarraman Winery Inc is expected to make a fresh takeover offer for winemaker Evans & Tate Ltd early next week, attempting to trump proposals by Peter Fogarty's Pendulum Capital Pty Ltd and Jack Bendat-linked Ferngrove Vineyards Ltd.

WA Business News understands that the takeover proposal will be lodged by Yarraman Pty Ltd, the Australian company of US-listed Yarraman Winery Inc in a bid to overcome problems with its rejected $148 million takeover proposal earlier this year.

The fresh deal would still include eliminating all of the winery's debt to ANZ, which stands at about $100 million.

It is understood that GE Commercial Finance is still expected to be involved providing fresh debt facilities.

WA Business News understands that Yarraman's new offer will involve a rights issue underwritten by Perth-based Patersons Securities.

It is also understood Yarrman's deal will be lower than its original bid, which equated to about 19 cents a share, but higher than the bids by Pendulum and Ferngrove.

WA Business News understands that Yarraman Winery Inc director Bill Middleton will fly to Perth from the US to discuss the offer with the E&T board next week.

Yarraman has been keeping a close eye on the takeover and merger proposals being assessed by the E&T board.

It is understood the group has been holding back on a fresh play until all bids for the company had been..

Yarraman is believed to be more confident to launch a bid after it was revealed that east-coast wine group Cheviot Bridge Ltd had run the ruler over E&T but was not proceeding with a formal offer..

WA Business News revealed in March that the Cheviot's listed property trust company, Cheviot Kirribilly Vineyard Property Group, wanted to acquire vineyards or wineries in Margaret River primarily because of its growing popularity with consumers of semillon sauvignon blanc blends.

"One of the reasons we are having a look is because there are some 'sweet spots' that Australian consumers like," Cheviot Bridge managing director Maurice Dean told WA Business News at the time.

"They like cabernet from Co_onawarra, shiraz from the Barossa, semillon sauvignon blanc from Margaret River and pinot noir from the Yarra Valley."

In an article in The Australian Financial Review today, Mr Dean said Cheviot had taken a look at E&T but had simply become a "tyre kicker" in the takeover process.

http://www.wabusinessnews.com.au/en-story.php?/1/55088/Yarraman-to-make-fresh-bid-for-E-T/dba