In response to Murray Goulburn’s $9.50 per share bid for Warrnambool Cheese and Butter (WCB), the dairy company has urged its shareholders to reject the offer, arguing the offer put forward by Canadian firm Saputo is superior.
Warrnambool today released a Target Statement in response to Murray Goulburn’s offer, claiming that the board unanimously recommends that shareholders reject the offer because Murray Goulburn’s offer is highly conditional and uncertain and is subject to the granting of authorisation by the Australian Competition Tribunal.
The intentions of Murray Goulburn in regards to the future of Warrnambool’s operations are unclear, the statement argues, claiming that Saputo’s offer, revised on 17 December 2013, is superior in terms of overall comparative assessment of value, certainty and timing.
However, a Murray Goulburn press release, issued today, says the company has a “compelling case to obtain authorisation from the Australian Competition Tribunal” and that “Murray Goulburn urges WCB shareholders to wait for the outcome of the tribunal process to properly assess the competing takeover bids for WCB.”
Murray Goulburn managing director, Gary Helou, said, “We urge WCB shareholders to not rush their decision to sell their WCB shares. WCB shareholders should wait until the merger authorisation application process has been determined so that Murray Goulburn’s Offer can be considered on its merits. Murray Goulburn remains committed to acquiring WCB, and believes the combination of WCB and Murray Goulburn will deliver an Australian owned and operated globally competitive dairy company.”
The Competition Tribunal expects to come to a decision by the end of February, however this could be extended.
Saputo is considering extending its Friday deadline for acceptances of its $9 a share bid.