Shares in debt-laden Margaret River wine producer Evans & Tate fell more than 14 per cent today following three strong trading days that pushed the stock 43 per cent higher to 28 cents.
Traders attributed the earlier rise to speculation that the winemaker had finalised a debt restructure plan. NASDAQ-listed Australian wine company Yarraman Estate has been named as having possible involvement in the deal.
However, Evans & Tate CEO Martin Johnson said that no deal had been struck and that the only news he could convey on the restructuring was that his team was committed to achieving it before the end of the financial year.
"It would be misleading to think there was a deal," Mr Johnson said.
He also sought to confirm the company had no plans to privatise, despite speculation along those lines in previous press reports.
Mr Johnson said the improvement in the share price may be linked to growing market awareness that the the much-talked about wine glut was receding as drought and industry changes reduce the over-supply that has hurt winemakers.
Traders said investors got anxious when an announcement on the restructure failed to surface today, sending E&T shares 4 cents lower to 24 cents.
The stock climbed steadily to current levels after dipping below 6 cents in June.
E&T told investors at its AGM last month that it aimed to complete a balance sheet restructure by June 30, 2007. E&T is carrying about $150 million in debt, with ANZ owed about $100 million.
