KKR, TPG Could Join for Fosters Wine Unit

Private equity firms Kohlberg Kravis Roberts and TPG are in talks to bid for Treasury Wine Estates, the wine unit of Australian brewer Fosters, according to reports.

The firms are considering whether to proceed together or separately, the Australian Financial Review said.

The reports surfaced after Fosters rejected a $2.5bn offer from New York-based private equity firm Cerberus Capital this month saying the bid was too cheap.

In 2007, KKR and TPG jointly acquired Texas-based Energy Future Holdings.

Fosters has spent around A$7bn (US$6.6bn) to buy wine assets from the market.