Murray Goulburn mulls fresh Warrnambool offer

Posted by Nicole Eckersley on 11th February 2010

Australian dairy co-op Murray Goulburn is weighing up the company’s next step in the takeover battle for rival firm Warrnambool Cheese and Butter Factory (WCB) but repeated its interest in the business.
Reports in Australia have claimed that Murray Goulburn plans to make another offer for WCB in the coming weeks after seeing its initial bid dismissed.

A spokesperson for Murray Goulburn emphasised that the business remains “very interested” in WCB and wants to hold talks with the company.

“Murray Goulburn is assessing what it’s next step might be,” the spokesperson told just-food. “We are seeking engagement from the WCB Board so that we can work together on merging the two companies.”

Two weeks ago, WCB criticised Murray Goulburn for seeking to “opportunistically” buy the business with an offer “at or slightly below” A$4 a share.

WCB said the offer did not reflect the company’s long-term value and claimed a merger would hit competition in Australia’s dairy sector.

WCB has also rejected a second offer from a mystery bidder.

Officials at WCB could not be reached for immediate comment. Shares in WCB closed overnight at A$3.45.

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