Australia's Treasury Wine restructures, takes $244 mln charge
SYDNEY, June 25
SYDNEY, June 25 (Reuters) - Australia's Treasury Wine Estates, which rejected a $2.9 billion takeover bid in May, on Wednesday outlined a restructuring aimed at improving its performance and said it would take a A$260 million ($244 million) impairment charge this year.
Treasury, the world's No.2 winemaker, said it will separate its lower value Commercial brand portfolio in Australia from its Luxury & Masstige portfolio. As part of the strategy, Treasury said it would move the release of its popular Penfolds Bin series and other luxury brands to October rather than March and May.
Treasury was approached by private equity giant Kohlberg Kravis Roberts & Co LP about a takeover in April but rejected the bid a month later, betting its Penfolds brand and new cost-cutting chief executive officer would boost earnings. ($1 = 1.0639 Australian Dollars) (Reporting by Lincoln Feast; Editing by Chris Reese)