Chinese investors tipped to lead Treasury Wine bidding

Industry investors are predicting Chinese businesses are likely to lead the bidding for Australia's largest wine company, Treasury Wines Estates Ltd, with a price tag of up to $4.2 billion reportedly within reach, The Australian reports.

According to the newspaper, Treasury, whose portfolio includes Penfolds, is now well positioned for a takeover offer, following an approach from United States private equity firm Cerberus Capital in 2010 - before it had completed its demerger from Foster's.

In 2011 of an additional approach from China's Bright Food was reported, however as the wine sector continues to struggle and Chinese demand continues to rise, speculation of a bidder for Treasury emerging has been reignited.

"Whether it's the next three months or the next three years, ultimately with that stable of brands, they'll be attractive to a global player or the Chinese," Perpetual fund manager Matt Williams told