Australia's Treasury Wines Estates is bid target

US private equity giant KKR has launched a renewed $3.4bn Australian dollar (£1.88bn; $3.17bn) takeover bid for Australian winemaker Treasury Wines Estates.

TWE, which owns brands such as Wolf Blass, Rosemount and Lindeman's, is the world's biggest listed winemaker.

Last year, it sold 385 million bottles and recorded revenues of AU$1.76bn.

KKR's new bid is a joint venture with fellow US private equity firm Rhone Group.

Rhone Group's contribution is not known and the bid is being led by KKR.

The proposed offer is worth AU$5.20 a share and represents a 11% increase on the earlier April bid, which was rejected by TWE's board.

KKR had a large cash influx following the $5.1bn (£3bn) sale of Oriental Brewery of South Korea to Anheuser-Busch InBev and appears thirsty for another drinks company.

The winemaker's board has urged shareholders not to throw out the new proposal.

It said in a statement: "The board of TWE, together with its advisers, has concluded, based on the revised proposal, that it is in the interests of its shareholders to engage further with KKR and Rhone."

TWE has a turbulent history and is currently undergoing restructuring that will see 175 job cuts.

It formed in 1995 as the wine division of Australia's Foster's group, brewers of the eponymous beer. However, continuing losses led to it being demerged in 2011.

Recent results have been disappointing, with volume falls in Australia, the result of risky price strategy and underwhelming sales in the China the result of government austerity.

In June last year, the group was forced to destroy AU$34m worth of unsellable wine as a result of disappointing US sales.