WCB waiting game continues PrintIncrease Text SizeDecrease Text Size24 Oct, 2013 06:39 PMLOUISE PREECE WCB managing director David Lord answers questions about the takeover offers, while chairman Terry Richardson watches on.WCB managing director David Lord answers questions about the takeover offers, while chairman Terry Richardson watches on. SHAREHOLDERS at the jam-packed Warrnambool Cheese & Butter annual general meeting earlier today were told the board wanted to see further detail on the latest $420 million takeover bid from Murray Goulburn (MG), before any formal recommendation would be announced. On October 18, the Victorian dairy co-operative offered $7.50 per WCB share, surpassing the Canadian company Saputo’s $7 offer (which WCB had already unanimously recommended), as well as the first offer from Bega. Since last Friday, WCB chairman Terry Richardson said there had been a subsequent meeting with MG, where the WCB directors requested additional information on its proposal. “We require them to clearly articulate their intentions for WCB, its business, our suppliers and staff members,” Mr Richardson said. Prior to the hefty MG offer being laid on the table, he said the board had been satisfied by Saputo’s offer because the company had clearly expressed its intentions to increase existing capacity, build new capacity at the Allansford site and retain existing management and employees. “Saputo has also stated its intention to introduce new product lines and support our own innovation and new product development,” Mr Richardson added. “They intend to pay leading competitive milk price to grow milk supply - and retain existing farmer supplier processes and structures.” One hurdle for the MG offer is the competition condition, which will be looked at by the Australian Competition Tribunal. It is not known how long that process will take. “The MG proposal is above fair value range; however it is subject to a competition condition, which is currently uncertain and will take several months to be determined,” Mr Richardson said. One shareholder asked the board how long the process of considering the offers will take, before a resolution is decided upon. Mr Richardson could not answer; meaning WCB shareholders and suppliers could be waiting a long time before an outcome for the factory is decided upon.
Posted on: Thu, 24 Oct 2013 12:27:55 +0000
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