Warrnambool Cheese and Butter has responded to Murray Goulburn’s takeover bid stating that it was not aware of the co-operatives intention to make an offer until it as announced on Friday.
Murray Goulburn proposed to acquire all the issued shares in Warrnambool via an off-market takeover offer for $7.50 cash per share.
Warrnambool stated that since it was not aware of MG’s intention to make an offer, the company’s directors are not yet in a position to make a formal response.
MG’s directors have urged WCB shareholders to take no action in relation to their shares until the offer has been considered in detail.
Warrnambool currently has takeover offers from Bega Cheese Limited and Canadian dairy company Saputo Inc.
Warrnambool has stated that Bega’s offer does not adequately reflect the strategic value of WCB to Bega, and that the offer is highly conditional and uncertain – with the potential to result in further tax liability for WCB shareholders.
WCB states that Saputo’s takeover offer is superior to Bega’s, and directors have urged shareholders to favour Saputo’s AU$7.00 per share bid in favour of Bega’s offer.