The bidding war for Warrnambool Cheese and Butter (WCB) has taken another twist with Murray Goulburn boosting its offer to $9.00 cash per share, up from $7.50.
The move comes after Canadian dairy company Saputo was given the official nod from Treasurer Joe Hockey for its foreign takeover yesterday.
MG said the revised offer underscored MG's commitment to acquiring WCB.
“The combination of MG and WCB is also 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,” the company said.
WCB said its directors were not yet in a position to make a formal response to the revised proposal, and would meet shortly to consider it in detail.
Saputo had sought approval of its takeover from the Foreign Investment Review Board and yesterday, it was approved without conditions, with Hockey stating the future ownership of WCB was in the hands of shareholders.
Until now, the WCB board has backed Saputo's $8 per share offer, and yesterday the board reiterated its unanimous recommendation in a Target’s Statement for Saputo's takeover offer.
WCB chairman Terry Richardson said the approval by the Treasurer significantly progresses Saputo's offer, which is “clearly superior to other current proposals”.
“As outlined in our Target's Statement released early today in response to Saputo's all cash offer, WCB directors unanimously recommend that WCB shareholders accept Saputo's offer, in the absence of a superior proposal.”
Out of the two other bidders, Bega Cheese and MG, only Bega has gained Australian Competition & Consumer Commission approval for a WCB takeover.
MG said the revised offer underscored MG's commitment to acquiring WCB.
