€2.35bn offer may spark bidding war for wine giant

Australia’s Treasury Wine Estates is opening its books to Kohlberg Kravis Roberts after the private equity giant hiked its takeover offer to $3.15bn (€2.35bn), raising the prospect of a bidding war for the world’s second biggest winemaker.

Treasury, which rejected a $2.9bn unsolicited bid from Kohlberg Kravis Roberts in April, said that the 10.6% rise in the offer price meant it was now “in the interests of shareholders to engage further.”

Asia’s growing appetite for wine, the value of Treasury’s Penfolds label, and an ongoing restructuring are helping turn perceptions of the company’s prospects around after a horror 2013 saw profits slump 38% in the six months to February.