Sunday, November 23rd1.2°C
22246
24058

Saputo becomes leading shareholder of Australian dairy with 20.1 per cent

MONTREAL - Saputo, already the biggest shareholder in Warrnambool Butter & Cheese, announced late Thursday that it is extending its AU$500-million takeover bid for Australia's oldest dairy processor for about two more weeks.

The Montreal-based dairy (TSX:SAP), which already controls just under 21.4 per cent of Warrnambool's stock, said the new deadline to tender to the offer is Jan. 22.

The multi-faceted bid had been set to expire on Friday.

Saputo described the bid as its "last and final offer" and said "there will be no further extension to the offer period."

Saputo has bid AU$9.20 per Warrnambool share if it gets a simple majority, AU$9.40 per share if it gets 75 per cent of the total and AU$9.60 per share if it gets at least 90 per cent of WCB's stock.

A rival bidder, Australia's Murray Goulburn, has offered AU$9.50 per share, conditional on it securing a majority of WCB shares and winning support from the Australian Competition Tribunal. The tribunal is holding hearings on the issue in February.

Murray Goulburn, with 17.7 per cent of Warrnambool's stock, is the company third- biggest stakeholder after Saputo and Bega Cheese, another Australian company which controls 18.8 per cent of WCB shares.

Word on a possible extension of Saputo's bid was first reported in an Australian newspaper, but that had been downplayed earlier Thursday by a Saputo spokeswoman.

"You can be sure that if there was such an announcement, we would make it available on the Australian Stock Exchange and on (the) TSX," Sandy Vassiadis wrote in an email.

The Australian newspaper said Saputo was running the risk of angering the country's takeovers panel for a second time by waiting until the last minute to extend its offer.

Saputo increased its bid in mid-December after the regulator criticized a decision by Saputo and Warrnambool to remove a special dividend in an earlier bid, which it said created "confusion and disruption" to the market for Warrnambool shares.

Meanwhile, the Australian Competition and Consumer Commission, which is assisting the takeover tribunal, has reiterated its concerns about Murray Goulburn's submission.

''The ACCC considers that a there is potential for the proposed acquisition to have the effect of lessening competition in the acquisition of raw milk,'' the commission said in a 76-page report, which had parts blacked out.

The agency made similar comments when Murray Goulburn tried to acquire Warrnambool in 2010.

Saputo's shares closed up 10 cents Thursday at C$49.01 on the Toronto Stock Exchange.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
23744


24120

FEATURED Property
14288621986 Abbott
5 bedrooms 5 baths
$3,698,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24156

24119


Member of BC Press Council


23369