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TWE board says no further action on KKR bid

Canberra Times logo Canberra Times 26/05/2014 Julie-anne Sprague

Treasury Wine Estates chairman Paul Rayner has written directly to the winemaker's shareholders, telling them the board would take no further action relating to Kholberg Kravis Roberts' $3.05 billion takeover bid.

He said the board has spent "considerable time" evaluating KKR's $3.05 billion offer and decided the deal did not reflect the fundamental value of the company when taking in to account it's plans for growth and profitability.

"As a result, we do not intend to take any further action in relation to this proposal," Mr Rayner said in the letter.

But he has kept the door open for better offers saying the winemaker, which makes Penfolds, Wolf Blass and Rosemount, will carefully consider any future proposals.

The nation's biggest winemaker by revenue is sacking 5 per cent of its workforce as it cuts costs and directs spending to marketing and consumer initiatives designed to boost wine sales.

KKR put its $4.70 cash per share offer to the board on April 16 but it was only revealed on May 20 after Treasury became concerned confidentiality surrounding the deal may have been lost.

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