Treasury Wine eyes split after $754m Diageo wine buy

Treasury Wine Estates chief executive Mike Clarke has foreshadowed a likely split of the company into a luxury wine business, led by Penfolds, Wolf Blass and Wynns, and a separate one focused on lower-end commercial wines, which may be sold. Clarke raised the possibility after announcing on Wednesday the acquisition of most of alcoholic beverages giant Diageo’s wine division for $754 million, with a large chunk of the funds to come from a 2-for-15 rights issue to raise $486 million.