Saputo strengthens and simplifies WCB bid

Canadian company Saputo has increased its offer for Warrnambool Cheese and Butter (WCB) in a new deal that values WCB at around $515 million.

The dairy giant has raised its bid to $9.20 a share, $9.00 of which is unconditional. WCB shareholders who sell to Saputo will receive $9.00 cash upfront and the remaining 20 cents once Saputo reaches the 50 per cent mark.

The offer is open until Friday 13 December and follows boosted bids from the two other rival bidders, Murray Goulburn and Bega Cheese.

"The board unanimously considers that an unconditional offer of $9.00 cash per share from Saputo, together with the potential increase of 20 cents per share for all shareholders... is a simpler, more certain and potentially more valuable offer than the previously recommended Saputo offer," the WCB board said.

Murray Goulburn last week told its shareholders it was considering a partial float to raise capital to help fund its expansion. However, its WCB bid still hinges on regulatory approval which could take months.