A private equity consortium led by Kohlberg Kravis Roberts has pulled out of the record Australian buyout of Coles Myer, after the retail chain rejected its A$18.2bn (€10.9bn) bid.

Coles Myer's board today said it had rejected the private equity group's improved offer of A$15.25 per share, made after the stock market closed last night. UBS advised the consortium on its bid.