Treasury Rumors Continue To Fly, With LVMH Added To List Of Potential SuitorsJune 26, 2014
While Treasury Wine Estates has declared its fiscal year starting in July as a “reset year” in which the company will amp up marketing activities and attempt a turnaround, rumors about a possible sale of the group continue to swirl.
Following Treasury’s announcement this week that it would take a writedown of up to $244 million in its current fiscal year, the Australian Financial Review (AFR) reported that LVMH is eyeing an acquisition of Treasury either in whole or in part. The AFR said Treasury’s upscale Penfolds brand is of particular interest to the French luxury group, and added that Constellation Brands may also be weighing its options vis-à-vis Treasury.
In May, Treasury rejected a A$3.05 billion ($2.9 billion) takeover offer from private equity firm KKR & Co., but said it will continue to engage with interested suitors.