Saputo fails to snare the Lion's share

Lion has refused to budge leaving Saputo just two per cent shy of its ambition to own more than 90 per cent of Warrnambool Cheese and Butter (WCB) when its offer closed yesterday.

The Canadian dairy giant now owns 87.911 per cent of WCB which means shareholders will receive $9.40 per share, instead of the $9.60 per share they would have received if Saputo had reached the 90 per cent threshold.

In October, Lion, which has a supply contract with WCB, bought a 9.99 per cent blocking stake in the company at the height of the takeover tussle.

In January, the company issued a statement saying it had acquired its shareholding in WCB to “further strengthen the close relationship it has enjoyed with WCB over many years".

“Lion’s rationale for acquiring its shareholding in WCB has not changed. Lion has no current intention to accept Saputo’s takeover offer in relation to WCB. Lion looks forward to continuing to strengthen its relationship with WCB,” the statement said.

A week later, the company again confirmed that it had no current intention to accept Saputo’s takeover offer, although it reserved the right to do so.

The Japanese-owned company continued to stand firm yesterday.