Saputos bid jumps hurdle Rob Harris & Simone Smith | November 12, 2013 UPDATE: WARRNAMBOOL Cheese and Butter shares have hit $8.54 following Saputos green light to pursue its takeover. WCB shares are currently trading at $8.50 a share, a 0.59 per cent increase from yesterday’s close of $8.45/share. VOTE NOW: Do you believe Saputo will buy Warrnambool? At 3.30pm 337,808 shares had been traded, the most in the past five days. Yesterday there were 39,323 shares traded. This morning Federal Treasurer Joe Hockey paved the way for Canadian dairy giant Saputo to bid for Warrnambool Cheese and Butter. He announced there would be no conditions on Saputos proposal. The future ownership of WBC is ultimately a matter for the shareholders but this decision provides certainty in relation to Saputos bid, Mr Hockey said. Australia is open for business and we welcome foreign investment when it is not contrary to the national interest. WCB has been the takeover target of three separate bidders - Saputo, Bega Cheese and Murray Goulburn. Saputo is the suitor favoured by Warrnambools board. The Canadian company has offered $8-a-share. Shadow treasurer Chris Bowen said Mr Hockeys decision was at odds with the comments of Prime Minister Tony Abbott who indicated Australians would prefer either Bega or MG to win the bid. This is a government that continues to be at war with itself over foreign investment, he said in a statement, citing coalition infighting over a foreign bid for GrainCorp, Australias largest agribusiness. Saputo chief executive and board vice-chairman Lino Saputo Jr welcomed Mr Hockeys decision after a review by the Foreign Investment Review Board. This provides greater certainty to all Warrnambool shareholders with respect to Saputos $8 all-cash offer, Mr Saputo said. Saputo has the strategic intent and the financial capacity to invest further in growing the Warrnambool business, expanding production and growing milk intake. Saputos offer provides the opportunity to grow the industry locally as well as fast track penetration into valuable export markets. Warrnambool will be at the heart of Saputo’s Australian operations, while also creating a platform for growth into the Asia Pacific region. This morning the WCB released a statement saying the board unanimously recommends to shareholders to accept Saputos offer in the absence of a superior bid. The statement said the companys directors and senior executives intend to accept Saputos offer. The WCBs Targets Statement which outlines the boards reasons has been served on Saputo and has been lodged with the Australian Securities and Investments Commission today. It will be sent to WCB shareholders this week.
Posted on: Tue, 12 Nov 2013 22:56:44 +0000
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