Australia's Treasury Wine Estates is betting its Penfolds brand and a cost-cutting new CEO will boost earnings and justify its decision to reject a $2.90 billion takeover offer from private equity giant Kohlberg Kravis Roberts & Co LP.The world's No. 2 winemaker declared its glass was half full on Tuesday as it announced it had rejected KKR's bid as too low, sending its share price above the bid value as investors rushed to get in ahead of any new offers from other parties.Asia's growing appetite for wine, the value of the Penfolds label and an ongoing restructuring are helping turn perceptions of Treasury's prospects around after a horror 2013 saw profits slump 38 percent in the six months to February."The KKR bid presumably is based on the old earnings expectations and the board's backing the new CEO to run the business a lot better than previous management," said Morningstar analyst Daniel Mueller.
KKR & Co. L.P. (KKR), is a global investment company. Shares of KKR fell by 1.72% or $-0.4006/share to $22.88. In the past year, the shares have traded as low as $17.27 and as high as $26.50. On average, 2745180 shares of KKR exchange hands on a given day and today's volume is recorded at 1146281.
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