Goldman Sachs Advising Treasury Wine

TREASURY Wine Estates has been using Goldman Sachs as its adviser in negotiations with KKR, which has offered to acquire the maker of the famed Penfolds Grange red wine for $3.05 billion.

This according to an article in The Australian: Goldman Sachs in the Treasury Wines camp

“Treasury Wine said Goldman Sachs is acting as the Melbourne-based company’s defence and financial adviser in talks with KKR. Treasury disclosed today that it had received a $4.70 per share takeover offer from the private equity firm on April 16, which it rejected.

“The two sides held “preliminary” discussions and had agreed to keep the offer confidential. However, Treasury felt compelled to disclose the approach after it learned that KKR had approached “one or more” of its shareholders.

“The offer was at a $1 premium — or 27 per cent — to TWE’s share price on April 16. After the bid was disclosed today, the stock jumped 77c, or 19 per cent, to $4.84 by mid afternoon.

“Treasury Wine chief executive Mike Clarke, perhaps on the advice of his Goldman Sachs bankers, wants a higher price than KKR is currently prepared to offer.

“KKR is being advised by Nomura.”

 

Read the rest of the article here. (Subscription required)