Guinness-owner Diageo is selling the majority of its wine business to one of the world's biggest publicly-listed winemakers, Australia's Treasury Wine Estates (TWE) for $552m.

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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.

Australian lager giant Foster’s has rebuffed an unsolicited private equity approach for its wine business worth between AUS$2.3bn (€1.65bn) and AUS$2.7bn (€1.95bn) Australian dollars.