WCB takeover bid

Q: How did Warrnambool Cheese and Butter's board react to Bega's $319 million bid?

WCB's board described the takeover offer as highly opportunistic and urged shareholders to reject the $319 million proposal from Bega Cheese.

A takeover offer for Australia's oldest milk processor, Warrnambool Cheese and Butter, is "highly opportunistic", the company's board said. The board urged shareholders on Thursday to reject a $319 million bid by Bega Cheese. The offer, made this month, sent WCB's shares to record highs. It was based on $2 cash and 1.5 Bega shares for each WCB share.

By InvestSMART · 27 Sep 2013

By InvestSMART ·
27 Sep 2013

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Frequently Asked Questions about this Article…

What takeover offer has been made for Warrnambool Cheese and Butter (WCB)?

Bega Cheese has lodged a takeover offer for Warrnambool Cheese and Butter. The bid is structured as $2 cash plus 1.5 Bega shares for each WCB share and is reported as a $319 million proposal.

How did Warrnambool Cheese and Butter's board react to Bega's $319 million bid?

WCB's board described the takeover offer as "highly opportunistic" and urged shareholders to reject the $319 million proposal from Bega Cheese.

When was the takeover offer for WCB announced?

The offer was made this month (as reported in the article), and the announcement pushed WCB's share price to record highs.

Did the takeover offer affect WCB’s share price?

Yes. The offer sent Warrnambool Cheese and Butter shares to record highs after the proposal was announced.

Which companies are involved in this takeover story?

The companies involved are Warrnambool Cheese and Butter (WCB), Australia’s oldest milk processor, and the bidder, Bega Cheese.

What exactly does the $2 cash and 1.5 Bega shares offer mean for each WCB share?

Under the proposal, holders of each WCB share would receive $2 in cash plus 1.5 Bega Cheese shares if they accepted the offer.

Is the takeover offer unconditional or did WCB recommend a course of action to shareholders?

WCB’s board recommended that shareholders reject the takeover offer, calling it "highly opportunistic." The article does not state that the offer is unconditional.

What should everyday investors watching this takeover do next?

Based on the article, investors should note the bid details (the $319 million offer of $2 cash plus 1.5 Bega shares), be aware the WCB board has urged rejection, and follow any further company announcements for updates before making decisions.