Saputo, the Canadian suitor of Warrnambool Cheese and Butter (WCB), has boosted its stake in the local dairy company since extending its offer on Friday.
Saputo announced that it now holds more than 26.4 per cent of WCB, a significant jump from the 21 per cent it held on Friday, when it announced the extension of its offer to January 22.
Saputo is offering $9.00 per WCB share, though this price increases to up to $9.60 if Saputo manages to attain more than 50 per cent of the company.
Rival bidder Murray Goulburn has so far has snared a 17.7 per cent stake in WCB, but but last week, the WCB board unanimously recommended shareholders reject MGs latest offer of $9.50.
WCB directors said they advised shareholders to reject the offer based on three key objections. The board said Saputo's offer was considered superior to MGs “based on an overall comparative assessment of value, certainty and timing”, that MGs offer was “highly conditional and uncertain” and that the intentions of MG regarding the future of WCB's operations were “unclear in a number of material respects, creating uncertainties for a range of WCB stakeholders”.
WCB's original suitor, Bega Cheese, allowed its bid to lapse last month, however it still holds an 18.8 per cent of WCB.
