$4.00 is way to low IMHOGood luck to holders...

$4.00 is way to low IMHO

Good luck to holders :)

http://www.smh.com.au/business/murray-goulburn-makes-takeover-bid-for-rival-20100129-n2m0.html

ERIC JOHNSTON
January 29, 2010 - 11:25AM

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Milk processing firm Murray Goulburn has made a takeover bid for smaller rival Warrnambool Cheese and Butter.

Murray Goulburn, a co-operative, has revealed that it had first put a takeover proposal worth about $160 million to Warrnambool Cheese and Butter in December. However, this approach was rejected.

Murray Goulburn chairman Grant Davies has told suppliers that the milk processor was currently considering its next move.

Shortly before Christmas Warrnambool said it had received an unnamed takeover proposal ''at or slightly below'' $4 per share. WCB shares were recently at $3.25.

Mr Davies said a merger with Warrnambool would form an outstanding 100 per cent supplier-owned dairy company, which would ensure improved returns for both the Murray Goulburn and Warrnambool's dairy farmer suppliers.

''We are currently contemplating our next steps but we are confident that a merger with Warrnambool Cheese and Butter is a very positive step for Murray Goulburn supplier-shareholders,'' Mr Davies said.

''We will continue to seek further engagement with Warrnambool Cheese and Butter's Board to address any issues or concerns that it may have with our proposal,'' he said.

Early last year the global financial crisis and collapsing commodity prices forced Warrnambool to slash the prices paid to its milk suppliers. This triggered a series of damaging events, led by a farmers' revolt, which ultimately caused a botched capital-raising, the collapse of a joint venture project with National Foods, a string of profit downgrades and the resignation of its chief executive.

Murray Goulburn's Davies also said the emergence of ``large multi-national companies'' as significant players in the Australian dairy industry was forcing producers to bulk up.

''We believe as a co-operative owned by its members we must be positioned with substantial scale, resources and capabilities in order to continue to successfully serve our supplier-shareholders,'' he said.

In 2007 Japanese beverage giant Kirin acquired dairy processor National Foods for $2.8 billion.

BusinessDay