KPMG calls Bega offer 'unfair'

Accounting firm's review concludes takeover offer 'neither fair nor reasonable', says offer 17.1% to 18.9% lower than share value.

Warrnambool Cheese and Butter Factory Company Holdings (WCB) says an independent expert's report has concluded Bega Cheese's (BGA) takeover offer is neither fair nor reasonable.

In a statement to the Australian Securities Exchange, WCB said KPMG Corporate Finance's report concluded Bega's offer consideration is between 17.1% and 18.9% lower than its assessed valuation range for WCB shares.

KPMG assessed WCB's value at between $6.96 and $7.49 per share, and assessed Bega's offer at between $5.77 and $6.08 per share.

Canadian dairy group Saputo has made a takeover offer of $7.00 cash per share, which falls within the independent expert's valuation range and is 18.1 per cent higher than the mid point of KPMG's assessed value range of Bega's offer, or $5.93 per share.