WARRNAMBOOL Cheese and Butter (WCB) chairman Frank Davis says the company is not for sale after revealing the milk products group received a buy-out proposal a month ago.
The Australian Financial Review reports that WCB told the market about an unsolicited takeover offer yesterday after the Australian Securities Exchange issued the company with a speeding ticket. The stock has risen close to 35 per cent in five days. Its market capitalisation rose to $105.4 million yesterday after a 20pc jump in the stock to $2.64.
Industry sources speculated that trade players such as Murray Goulburn, Parmalat and Fonterra were the most likely bidders.
The acquisition would make sense for Murray Goulburn, which owns the Devondale brand, given the cost saving benefits and lack of opportunities for the milk group.
