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Saputo to raise offer for Warrnambool

Canadian dairy giant Saputo is set to raise its takeover offer for Warrnambool Cheese and Butter after rival bidders trumped its first offer.

Warrnambool shares were placed in a trading halt on Friday after the company said it was negotiating a proposed revised offer from Saputo.

The Canadian company has offered $8 for each Warrnambool share, a bid that was welcomed by the target’s board.

But this week that offer was trumped by Murray Goulburn, which increased its offer to $9 per share, valuing the takeover target at $505 million.

The third bidder in the battle for Warrnambool, Bega Cheese, has also increased its original 1.2 shares plus $2 cash offer, to 1.5 of its shares plus $2 in cash for each Warrnambool share.

At the time Bega Cheese increased its offer, it was worth $8.87 per Warrnambool share.

Warrnambool says it expects to announce details of Saputo’s increased offer on Friday, or Monday November 18.

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