Australian dairy firm Warrnambool Cheese and Butter Factory (WCB) has rejected a second bid from local rival Murray Goulburn.
WCB said today (19 February) that Murray Goulburn’s latest offer – which values the business at A$4.35 (US$3.87) a share – did not “incorporate [the] appropriate value” of the medium- and long-term prospects of the company.
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Murray Goulburn’s previous bid was said to be “at or slightly” below A$4 a share. WCB’s stock closed at A$4 on the Australian Stock Exchange today.
WCB claimed the latest offer did not reflect the company’s “unique geographic location” and “strategic position in the Australian dairy industry”.
The company asserted that it had “outperformed” Murray Goulburn on milk supply growth and sales growth.
Chairman Frank Davis said: “We reject Murray Goulburn’s assertions that this proposal would be in the best interests of our shareholders and suppliers. We firmly believe that the terms of the revised proposal continue to undervalue WCB.”
The company has received another bid from an unnamed suitor, which was rejected before Christmas.
