I'm not sure Fonterra is in a position to outlay such a large sum at the moment. My feeling is that they're more likely to stick with their BGA stake and make a bigger move when they've got a few of their own problems sorted out.
This from BGA:
"We are contemplating what we might do with our stake," Mr Irvin said.
"We have had a number of inquiries and I don't think it's appropriate to reveal who those parties might be ... (but), yes, we have had some international inquiries.
"The reality is ... the Europeans and the Asians are all very interested in well-performing Australian dairy assets."
'Inquiries' may or may not lead to anything, and if they don't BGA has an awkward problem on its hands, especially if Fonterra has an objection to Saputo.
It might suit Fonterra to have Saputo not extend, and then let the rest of us contemplate a stalemate.
WCB Price at posting:
$9.16 Sentiment: Hold Disclosure: Held
