The world's second-largest winemaker has opened takeover talks with private equity group KKR after receiving an improved
The move raises the prospect of a bidding contest for Treasury, which also owns the Beringer brand.
The new offer is a 5% premium on Treasury's share price on Friday. Treasury's shares have fallen from an all-time high a year ago as it slashed earnings forecasts and suffered oversupply problems in its US arm and sluggish sales in
Treasury had a dreadful 2013, when profits slumped 38% in the six months to February. But the company is turning round its fortunes with a restructuring plan bolstered by
The winemaker stressed that it was providing KKR and
Rivkin said KKR may take fright after looking at Treasury's books. "I think this is a starting bid. Once they have a look through, if there are any issues there that the market's not aware of they could still very easily walk away."
Treasury's woes reflect problems in the broader Australian wine industry, which has struggled with volatile market conditions and a high currency exchange rate in recent years.
Treasury - which posted sales of
An efficiency drive imposed by Clarke is expected to generate
A bad 2013 saw Treasury's profits fall by 38% in the six months to February. It has now received a pounds 1.87bn bid for the business
A Penfolds vineyard in
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