Canadian dairy processor Saputo denies it’s dumping its takeover bid for Warrnambool Cheese and Butter and instead targeting its rival bidder, Bega Cheese.
The ACCC this morning gave approval for the Bega bid for WCB. It will be weeks before the Foreign Investment Review Board rules on the Saputo bid.
Saputo chief executive Lino Saputo is in south-west Victoria trying to win over Warrnambool shareholders, and flatly denies speculation his company has been buying Bega shares.
Mr Saputo says he’s not concerned that Japanese company Kirin, which owns Lion Foods, has just bought a 10 per cent stake in WCB.
«There’s a lot of things in this process here that we didn’t see coming, to be honest with you, and we’re adjusting on a day to day basis.
«I don’t feel any threat at all from the Lion bid and Murray Goulburn bid or the Bega bid.
«I think our bid is very compelling, we’re looking at 50 per cent control and I think that is still very possible.»
Warrnambool Cheese and Butter CEO David Lord told suppliers at a meeting yesterday at Mount Gambier in South Australia that he’s not sure what Kirin is planning to do.
«I think it adds another dimension to what is occurring right now. We don’t know what Kirin’s intentions are, but we noted that they stopped buying today.
«So it looks like they were just buying yesterday to get to a predetermined shareholding level and they are out of the market today, so I think we will find out more about what their intentions are over the coming days.»
Agriculture Minister Barnaby Joyce says he would like Australians to own Australian assets as much as possible.
His comments follow those of Victorian Agriculture Minister Peter Walsh, who’s waded into the discussion over the future owner of WCB, declaring an Australian merger would be in the best interests of the industry.
Mr Joyce says there’s a long way to go in the bidding process, but admits his views align with those of Mr Walsh.
Source: ABC