MURRAY Goulburn's bid of $4.35 a share ($174 million) for Warrnambool Cheese and Butter – 45¢ a share higher than an offer made in December – was an attempt to break through the dairy company's stubborn resistance to its much-bigger suitor.
But the offer came with a catch. Murray Goulburn wanted Warrnambool to support its application to the Australian Competition and Consumer Commission that the acquisition would lead to no lessening in competition in south-western Victoria, one of Australia's most-lucrative dairying regions.
It was a condition that the Warrnambool board was not prepared to meet, Mr Davis told The Australian Financial Review.
"Our board and supplier shareholders firmly believe there will be a lessening in competition," Mr Davis said.
"If you have three players and you take one out it's hard to argue that competition is going to get better."
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