Australia's largest milk processor, Murray Goulburn Co-op, is reviewing its $156 million takeover proposal for Warrnambool Cheese & Butter and plans to present an improved offer to the board in the next few weeks.
The Australian Financial Review reports that Murray Goulburn chief executive Stephen O'Rouke said the co-op was reviewing its original offer price, bid conditions and longer-term plans in an attempt to secure the support of the board, which last week rejected Murray Goulburn's unsolicited approach.
"All elements of the proposal are being looked at – there are a number of elements to this proposal that impact on shareholders from the price right through to issues dealing with the farmers and the town itself and the region," he said.
The acquisition would double Murray Goulburn's milk volumes in the western district of Victoria, from 900 million to 1.8 billion litres, allowing it to increase production of higher value-added dairy products such as cheese and butter.
Email a friend