Australia’s largest winemaker Treasury Wine Estates has rejected takeover bids from two global private equity firms, saying they undervalued the company.

Treasury, which owns Penfolds, Wolf Blass and a host of other prominent labels, has ended discussions with Kohlberg Kravis Roberts and a rival bidder, believed to be TPG.

The two firms put forward $5.20-a-share offers that valued Treasury at almost $3.4 billion.

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Treasury said it held discussions with major shareholders, most of whom felt the offer undervalued the winemaker.

“These discussions provided a forum for these shareholders to express a view on the proposals, with clear feedback from almost every one of these shareholders indicating that they believed a price of $5.20 per share undervalued the company,” Treasury said in a statement on Monday.

The company said it could deliver better value for shareholders through its turnaround strategy, which includes efforts to cut costs and bolster its luxury and prestige brands.

“The board is confident in the strategic plans to grow the company and is looking forward to working with management to deliver value to its shareholders,” chairman Paul Rayner said.

It has been a tough couple of years for Treasury shareholders, with the share price falling from a high of $6.47 in May 2013 to as low as $3.49 this May, prior to the takeover bids being announced.

Treasury suffered a $110.9 million loss for the 2013/14 financial year following a turbulent 12 months that included senior management changes, a major restructure and the costly destruction of hundreds of thousands of cases of excess wine.

But new chief executive Michael Clarke has said he is working to “reset” the business during the 2015 financial year.