Golden State Vintners has rejected a $72 million buyout bid from Wine Group in favor of a bid from a group led by chief executive Jeffrey O'Neill for the same amount

Food & Drink Weekly, March 29, 2004

Golden State Vintners (GSV) has rejected a $72 million buyout bid from Wine Group in favor of a bid from a group led by chief executive Jeffrey O'Neill for the same amount. The decision has brought a stinging attack from the Wine Group. In a statement, the Wine Group's CEO David Kent said: "We don't understand how a properly functioning board of directors, when presented with our offer, can agree to a transaction that is contingent on the ability of a newly- formed company to raise such a substantial amount of money.

"The Wine Group's offers to acquire GSV have never been conditioned on financing," Kent continued. "We have concluded that under these circumstances it does not make sense for The Wine Group to bid against itself." The merger is expected to be completed by the end of July 2004.