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Friday, November 29, 2013

Australian regulator puts Saputo bid for Warrnambool on hold, (TSE: SAP.TO)

Saputo Inc's bid for Australia's Warrnambool Cheese and Butter Factory Co was dealt a blow on Friday after a regulator granted a rival suitor's request for an interim order preventing the Canadian dairy firm from processing acceptances received in the deal. Saputo declared its A$9 bid, which is backed by the Warrnambool board, unconditional on Monday and said it would hike its offer if it won control.But rival bidder Murray Goulburn Co-operative Co Ltd later appealed to Australia's Takeovers Panel to block Saputo's revised bid.Murray Goulburn and Bega Cheese Ltd, which is also vying to acquire Warrnambool in a three way takeover battle, argue the decision under Saputo's revised offer to drop A$1.31 per share in proposed dividends means shareholders will not have access to A$0.56 in franking credits.The panel said its ruling could extend for two months.

Saputo Inc. produces, markets and distributes an array of dairy products in Canada, the United States, Argentina and Europe, as well as bakery products in Canada. Shares of SAP traded higher by 0.58% or $0.28/share to $48.56. In the past year, the shares have traded as low as $45.40 and as high as $54.62. On average, 286845 shares of SAP.TO exchange hands on a given day and today's volume is recorded at 344488.