At the end of November, an interim order from the Australian government’s Takeovers Panel prevented the Montreal, Canada-based dairy company from ‘processing any acceptances received under its bid for Warrnambool and requires the effect of the interim orders to be disclosed’.
Saputo, which now has 5.4 million Warrnambool shares (9.6% of the Victorian dairy producer), was building what The Australian described as ‘a nice head of steam’ in its effort to force Warrnambool’s other major shareholders, Kirin Holdings, Bega Cheese and Murray Goulburn, to negotiate with it over the control of the dairy producer.
Kirin has a 9.99% stake in Warrnambool, Bega an 18.5% shareholding and Murray Goulburn a 17.8% interest. Bega and Murray Goulburn are fighting with Saputo to acquire Warrnambool.
On the last working day of Australian, Murray Goulburn turned up the heat on Saputo by raising its Warrnambool takeover offer to $9.50 a share. On the same day, it submitted an argument to the Australian Competition Tribunal that outlines the rationale of the Melbourne-based cooperative’s takeover of Warrnambool that Murray Goulburn argues is in the national interest.
Murray Goulburn protested that Saputo had ‘misinformed’ shareholders about the true value of its bid. Now Saputo faces the possibility, as per the arguments of Bega and Murray Goulburn, that the Takeovers Panel may force Saputo to hand back the shares in Warrnambool it acquired or force Saputo, if it still wants to continue to try and acquire Warrnambool, to raise its Warrnambool takeover offer to $9.56 per share.
That is the value of a previous Saputo offer that some Warrnambool shareholders who sold their shares to the Canadian company may have expected to get for the Warrnambool stock rather than the company’s current $9 per share offer, or as much as $9.20 if it acquires more than 50% of Warrnambool.
Saputo made its first move in early October.
Source: The Australia/Sydney Morning Herald
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