SYDNEY, May 20 (Reuters) - Australia’s Treasury Wine Estates said on Tuesday it rejected a A$3.1 billion ($2.90 billion) takeover offer from private equity giant Kohlberg Kravis Roberts & Co LP on the grounds that the bid was too low.
Treasury said U.S.-based KKR offered A$4.70 per share on April 16 but that the offer price did not represent the company’s fundamental value. The stock closed at A$4.07 on Monday.
Treasury recently installed a new CEO to help restructure the business after problems at its U.S. arm prompted the company to slice nearly a fifth off its full-year profit forecast. ($1 = 1.0696 Australian Dollars) (Reporting by Byron Kaye; Editing by Stephen Coates)