Murray Goulburn has continued to build its stake in local rival Warrnambool Cheese and Butter Factory.

Murray Goulburn, which has had two takeover approaches rejected by the WCB board, has grown its stake in the group from 7% to 8.37% of shares, according to a filing with the Australian stock exchange today (11 March).

Murray Goulburn bought 546,722 WCB shares on-market between 3 March and 11 March for A$4.50 (US$4.12) a share.

The price was 15 cents higher than the value of Murray Goulburn's second offer, which WCB rebuffed on 19 February.

At the time, Stephen O'Rourke, Murray Goulburn's managing director, insisted that offer was "a genuine proposal" to deliver higher returns to farmers.

However, WCB claimed the latest offer did not reflect the company's value due to its "unique geographic location" and "strategic position in the Australian dairy industry".