Treasury Wine Estates has ended talks with two private equity bidders as it believed the bidders are not able to support a transaction on terms and at a price acceptable to the board.

The company, which makes Penfolds Grange, had announced on 4 August that it received an unsolicited, indicative, non-binding and conditional proposal to acquire all its shares at a price of A$5.20 ($4.5) cash per share on behalf of funds managed by Kohlberg Kravis Roberts and Rhône Capital by way of a scheme of arrangement.

On 11 August, the Board announced that it had received another unsolicited, indicative, non-binding and conditional proposal from another global private equity investor to acquire all shares at a price of A$5.20 ($4.5) cash per share by way of scheme of arrangement.

Over the past month, the company held discussions with shareholders holding in aggregate around 50% of the company’s shares, who believed that the price undervalued the company.

The major shareholders believe that the company’s strategic plans will increase and accelerate consumer marketing investment in its brands.

Throughout the due diligence process the private equity bidders indicated support for the management’s strategic plans and roadmap, and did not identify any major concerns with the business.

However, Treasury Wine Estates said it is now apparent to the company that the bidders are not able to support a transaction on terms and at a price acceptable to the board.

Treasury Wine, the world’s second-biggest listed vintner after Constellation Brands, produces vintages ranging from California’s Beringer brand to the local premium Penfolds Grange label.

The company said it would now refocus on rebuilding its image.

TWE chairman Paul Rayner said: "The Board’s focus continues to be to act in the best interests of all shareholders. Following the receipt of the initial, indicative proposals from the two parties, we believed it was in shareholders’ best interest to grant those parties the opportunity to conduct non-exclusive due diligence.

"That process has now concluded and the Board is confident in the strategic plans to grow the Company and is looking forward to working with Management to deliver value to its shareholders."