Bega tipped to make revised Warrnambool offer

Bega Cheese Limited is expected to make a revised offer for Warrnambool Cheese and Butter this week following a scheduled board meeting.

The company received the all-clear from the ACCC to pursue its takeover bid for Warrnambool last week, and in addition, its shares rose by 26 percent due to dairy giant Fonterra purchasing a six percent stake in the business.

Barry Irvin, Bega’s executive chairman said that while the offer for Warrnambool will be discussed at the meeting, it may take time for a final decision to be made.

"Things keep changing, we are talking about those sorts of things on the agenda, but the outcome is for the board," Irvin told The Weekly Times Now.

"It might require one or two discussions."

Bega’s initial offer of 1.2 shares for every Warrnambool share plus $2 cash was unanimously rejected by Warrnambool’s board who stated that it was neither fair, nor reasonable, and did not adequately reflect the strategic value of Warrnambool to Bega.

As it stands, Bega Cheese, Murray Goulburn and Canadian dairy processor Saputo have all placed takeover bids for Warrnambool.

Warrnambool’s board has recommended that shareholders accept Saputo’s offer in absence of a superior proposal.

 

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