News: Suitors tussle as Warrnambool battle heats

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The battle for Warrnambool Cheese & Butter Factory Co (ASX:WCB) has heated up to a $505 million tussle as one of its three suitors raised its bid. 

 

Australia’s biggest dairy exporter, Murray Goulburn Co-operative Limited has sweetened its all-cash bid to $9 per share.

 

The offer trumps Canadian dairy giant Saputo who has offered $8 per share and Bega Cheese Limited (ASX:BGA) who has put forward a cash and scrip bid with an implied value of around $7.23 per share based on yesterday’s close.

 

Murray Goulburn says it remains firmly committed to acquiring Warrnambool after which it hopes to create a globally competitive dairy food company.

 

Warrnambool has today told shareholders to take no action as it considers the latest developments which come just one day after Australian Treasurer Joe Hockey gave Saputo the all clear to proceed with its bid.

 

Warrnambool Cheese & Butter Factory reported a net profit of $7.5 million in the 2013 financial year.