Allied Domecq has accepted the revised offer by Swiss group Hess in the battle for Aussie winery Peter Lehman.

This follows Hess’ announcement that it was prepared to match Allied’s offer of A$4.00 per share.

Chief executive of Allied Domecq, Philip Bowman, said: "We have informed the board of PLW that we propose to accept the Hess offer for our entire stake - 14.53%.

"In order to minimise ongoing uncertainty for PLW, we would encourage other shareholders to do the same."