SAPUTO continues to increase its stake in Warrnambool Cheese and Butter (WCB), despite being unable to process any further acceptances of its $9 offer for WCB shares.
After upping its WCB stake to 10.99 per cent at the start of the month, then 13.555pc on December 4, Saputo released a statement to the Australian Securities Exchange this morning (Wednesday) noting the Canadian company now holds 14.652pc of WCB.
The federal government’s Takeovers Panel advised Saputo at the end of November it must not process any further acceptances of its offer for WCB shares while it looks into an application from bid competitor Murray Goulburn (MG).
MG, Australia’s largest dairy exporter, is locked in a three-way takeover battle with Bega Cheese and Saputo for control of WCB, and is the only bidder yet to clear its external regulatory hurdles.
WCB has repeatedly urged shareholders to not act on MG’s higher offer for the company and to reject Bega’s offer.
«WCB notes the amended MG proposal remains subject to eight conditions which compares unfavourably on the basis of certainty to each of the Saputo and Bega Cheese off market takeover offers which are both unconditional,» WCB said in a statement to the ASX.
Saputo has confirmed while WCB shareholders could still complete and send acceptances to the company, it could not process them at this time, nor could it pay shareholders for acceptances already received while the takeover panel’s interim order remain in force. However, Saputo is still obliged to notify the ASX of acceptances.
The panel’s interim orders will remain in effect until the takeovers panel issues further orders or a final ruling and could last up to two months if neither occurs. WCB says it will seek leave to actively participate in the tribunal process as an interested party.
MG’s $9.50/share cash offer trumps Saputo’s $9.20, fuelling speculation the bid price tag could rise up to $10 a share.
Canadian analysts say the bidding war has become irrational, political and dangerous.
Fund manager John Stephenson, of First Asset Investment in Toronto, told The Canadian Press that Saputo investors were becoming jittery.
‘‘I think it’s starting to get to the silly zone where the deal dynamics are driving this,’’ Mr Stephenson said, adding anything above a 10 cent rise would be ‘‘a bit of a worry’’.
Source: The Land