Murray Goulburn has escalated the battle for Warrnambool Cheese and Butter, trumping preferred Canadian bidder Saputo with a $505 million offer.
Murray Goulburn today said its increased offer underscored its commitment to acquiring the Victorian dairy producer.
It said a combined Murray Goulburn and Warrnambool “is the only option available that delivers an Australian-owned and operated company with the scale, capacity, strength and momentum to service global growth opportunities, returning profits to dairy farmers and their communities”.
Murray Goulburn is now offering $9 for each Warrnambool share, up from its previous offer of $7.50.
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It is above Saputo’s $8 per share offer, which Warrnambool’s board had welcomed in the absence of a superior offer.
Treasurer Joe Hockey said yesterday he wouldn’t stand in the way of Saputo taking control of Warrnambool.
Murray Goulburn’s offer would need approval from the competition watchdog.
Warrnambool’s board will meet shortly to consider Murray Goulburn’s revised bid, and has advised shareholders to take no action at this stage.
Bega Cheese is also bidding for control of Warrnambool, with an offer of 1.2 of its shares plus $2 for each Warrnambool share.
