The Lehmann saga continues. Allied Domecq has again upped the ante by increasing its entire bid for Peter Lehmann Ltd to A$4.00 per share, ahead of rival bidder the Swiss-based Hess Group’s A$3.85. Hess surely anticipated that Allied’s bid would reach this level, since it was telegraphed by Allied’s previous statement that it would pay A$4.00 per share once it had acquired 90% of the company’s stock. Meantime, Peter Lehmann has vented his spleen in the direction of his three independent directors for supporting Allied’s previous bid of A$3.85. How much of this is theatrical bluster we will possibly never know, since the company’s directors must surely be seen to be acting in the best interests of their shareholders. The Hess Group would never have gone this far without expecting Allied to go to A$4.00, so I fully anticipate another bid from the Swiss corner to equal it. Then shareholders will again be left with an even choice between the two bidders. If it stays even, I expect Hess to win. But Allied’s warchest, should they really wish to raid it, is surely the deeper of the two.
