Treasury Wine Estates turns down takeover bids

29 September, 2014

Treasury Wine Estates has down two bids from private equity groups valuing the firm at £1.8 billion, preferring to grow the business as a standalone company.

The Wolf Blass, Lindeman’s and Penfolds producer said it discussed the bids with shareholders and they decided the offer of £2.79 per share undervalued the company.

TWE said: “It is now apparent to the company that the bidders are not able to support a transaction on terms and at a price acceptable to the board.”

It previously turned down a bid fro KKR and Rhone in May, and rejected them once more, along with another bidder, today.

Michael Claire, chief executive at TWE, said he thinks it is now over and no further bids will be tabled.

Morningstar analyst Daniel Mueller, an analyst with Morningstar, cast doubt on TWE’s ability to grow as a standalone company.

He said: “Management is saying all the right things today, but it is a really tough industry and two previous management teams at Treasury also had optimistic messages and failed to deliver.” 




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Richard Hemming MW: beware inverse snobbery

Few things can bring communal pleasure so intimately as wine. Apart from a hot tub, perhaps. Sport can trigger mass jubilation, film gives us shared empathy, but wine has a nigh-unique ability to bestow conviviality among us through a shared bottle – which makes it especially galling that we spend so much time divided over it.

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