Saputo is continuing to steam along in the fight for Warrnambool Cheese and Butter, despite being banned from paying shareholders who accept its offer.
The Canadian dairy behemoth announced today that it had increased its holding in WCB from 10.99 to 13.56 per cent.
But it doesn’t have ownership of these shares yet. The Australian Takeovers Panel has banned Saputo for two months from processing acceptances to its offer after rival bidder Murray Goulburn protested that Saputo had »misinformed» the market.
The basis of Murray Goulburn’s application was Saputo increasing its offer from $9 to $9.20 if it reached a majority holding, while WCB withdrew the payment of special dividends.
WCB planned to pay a 56 cent franking credit to shareholders if Saputo’s stake reached more the 50 per cent. Murray Goulburn managing director Gary Helou said this was effectively a reduction in Saputo’s offer.
The delay has bought Murray Goulburn time because its bid of $9.50 cash is subject to approval from the Australian Competition Tribunal, which could take up to six months.
The tribunal will start hearing Murray Goulburn’s Goulburn’s case next Monday in Melbourne.
The cooperative is seeking to have a »significant portion» of its application to not be released to the public on Australian Competition and Consumer Commission’s website and on the tribunal merger authorisation register, citing commercial in confidence issues.
Meanwhile the third bidder Bega is reminding WCB shareholders is still a player in the bidder war.
In a statement to the ASX on Tuesday, the NSW-based company said it can start paying shareholders its cash and scrip offer of $2 plus 1.5 Bega shares after it declared its offer unconditional last month.
It’s bid is worth is $8.98 based on current prices.
»If you accept Bega Cheese’s offer you will receive [payment] … within eight business days of you acceptance being processed,» Bega company secretary Brett Kelly said.
Source: SMH
