Warrnambool Cheese and Butter (WCB) shareholders must consider the future of the Australian dairy industry, according to Australia's largest dairy company, Murray Goulburn (MG), which today trumped Saputo's latest bid.
MG increased its WCB takeover offer to $9.50 a share, valuing WCB at $533 million, and the company is also legally challenging the Canadian company's $9.20 offer.
“MG's revised offer represents compelling value for WCB shareholders, delivers them a demonstrably superior value outcome relative to all other competing proposals, and is simple and straightforward,” the company said.
“We urge WCB shareholders to seriously consider the benefits of MG's revised offer – this is an important decision that will have significant ramifications for the future of the Australian dairy industry as a whole. As key stakeholders within this industry we encourage WCB shareholders to take a long term view when considering the future of your company and the outlook for the Australian dairy industry.”
MG has also lodged an application with the Takeovers Panel claiming that Saputo's new offer contravenes the "truth in takeovers" regulation.
WCB withdrew a special dividend offer after Saputo changed its bid to include a 20 cent conditional payment if it gained 50 per cent of WCB.
Bega Cheese, the third WCB bidder, has also said it had “entered an appearance in respect of those proceedings, with a view to ensuring that its interests and those of its shareholders are properly represented before the panel”.
The panel has said it would not comment on the merits of the case.
