Wine Group Raises Its Offer for Golden State

Golden State Vintners Inc., a supplier of bulk wine and grapes to California wineries, said Friday that Wine Group raised its takeover offer to about $74 million in cash, surpassing an offer from Golden State’s chief executive.

Calling Wine Group’s offer superior to the bid made March 23 by O’Neill Acquisition Co. for $72 million in cash, Napa-based Golden State said that the offer was not subject to a financing condition and that Wine Group would post $8 million cash in escrow in support of the transaction.

Golden State, whose shares closed at $7.21 on Nasdaq on Thursday, has about $29 million of assumable debt. The stock has gained 52% since Feb. 23, the day before the company disclosed competing takeover bids.

U.S. financial markets were closed Friday in observance of Good Friday.

The O’Neill offer requires that Golden State’s board negotiate in good faith with the O’Neill group, led by Golden State CEO Jeffrey O’Neill, until April 14, allowing it to adjust the terms and conditions of the offer.

The O’Neill group previously offered $6.85 a share in cash and an equity interest. Wine Group countered that with a bid of $7.25 a share.

Golden State has been named as a defendant in two lawsuits seeking to block certain parts of the O’Neill deal, which includes a $1.8-million breakup fee.

Representatives of Golden State and Wine Group weren’t available for comment. San Francisco-based Wine Group produces and sells such wine brands as Glen Ellen and Corbett Canyon.