The winemaker behind Penfolds, Wolf Blass and Rosemount Estate has turned down two massive private equity bids which valued it at A$3.4 billion (£1.8 billion).
News of the rejection by Treasury Wine Estates saw its shares crash more than 14% in Australia. Treasury said it wanted to grow organically and following talks with shareholders it said the offers undervalued it.
Kohlberg Kravis Roberts with Rhone Capital had raised their joint offer to $5.20 a share last month, while TPG Capital later upped its rival bid to match this.
But Treasury chief executive Michael Clarke, who took over the group in March to turn it around, said that once it became clear last week that neither bidder would raise its offer further he decided the discussions were over.
AIM-listed Kent-based sparkling wine house Gusbourne — backed by Conservative peer Lord Ashcroft — reported a 143% jump in sales in the first half to £194,000 and said its 2014 harvest should be “excellent”.
It reported a net loss of £501,000, more than double the loss at the same time last year, but said this was in line with expectations as it reflected the “ongoing investment” in its “long-term strategic plan.”
