On Monday, the Australian vintner Treasury Wine Estates stated that it would consider the $3.2 billion takeover offered by the private equity giant Kohlberg Kravis Roberts.

Back in April, this wine estate that owns Penfolds and Beringer Vineyards had rejected a $2.8 billion offer by K.K.R. That time the winemaker's board of directors of the Treasury Wine Estates stated undervaluing the company as the reason for rejection.

After the rejection K.K.R. approached a New York private equity firm called the Rhône Capital and they both came up with a revised bid of 5.20 Australian dollars per share, or $4.80. This new figure was nearly 11% higher than the earlier rejected figure of 4.70 dollars.

This new offer of K.K.R. represents a premium of 41% to where the shares were trading on April 15, the day before it made its initial bid. In all the shares of Treasury Wine Estates have rallied since May as investors believe that K.K.R. or another potential suitor would surly emerge with a higher offer for the company.

Treasury Wine said, "Its board has concluded, based on the revised proposal that it is in the interests of its shareholders to engage further with K.K.R. and Rhône".

Considering the recent trends, the profits as well as the sales of Treasury Wine have declined due to the decrease in demand from Australia and the United States. Demand from China has also dipped as Chinese consumers now spend less on premium wines thanks to a government campaign against conspicuous consumption.

Kravis Roberts on the other hand is a private equity giant. It owns the Lindeman's, Rosemount Estate and Wolf Blass labels among its more than 80 wine brands.