Shares in Treasury Wine Estates have jumped more than four per cent after US private equity firm KKR lifted its takeover offer for the Penfolds owner.

Treasury shares were trading at $5.16 per share at 1105 AEST, up from $4.95 on Friday, after emerging from a trading halt pending the takeover bid announcement.

Treasury, which also owns the Lindeman’s, Wolf Blass and Rosemount brands and the Beringer and Chateau St Jean labels in the US, on Monday said KKR and its partner Rhone Capital had lifted its takeover offer to $5.20 per share.

The increased offer values the company at around $3.38 billion.

The winemaker’s board in May rejected a $4.70 a share offer, arguing it undervalued the company.

But Treasury says it is now in negotiations with KKR and Rhone to allow them to carry out due diligence on the company’s books.

“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 Rhône,” TWE said in a statement on Monday.

The $5.20 per share offer is more than 40 per cent above Treasury’s $3.69 share price in April, prior to the initial takeover bid being announced.