Takeover target Warrnambool Cheese and Butter says the latest offer made by Canadian suitor Saputo is superior to a rival bid from Murray Goulburn.
Saputo's offer is considered superior in terms of value, certainty and timing, Warrnambool Cheese said on Friday.
The Canadian firm sweetened its offer earlier this week, in line with undertakings made to the Takeovers Panel.
Its earlier unconditional offer of $9.00 per Warrnambool share, and an increase of 20 cents if it attained more than 50 per cent of the shares, remained unchanged.
But the offer will increase to $9.40 if Saputo obtains more than 75 per cent of Warrnambool shares, and to $9.60 if it surpasses 90 per cent.
Murray Goulburn is offering $9.50 for each Warrnambool share, but it is conditional upon obtaining more than 50 per cent of the target's shares.
However, Murray Goulburn's offer has not been declared final.
Warrnambool has recommended that its shareholders reject the Murray Goulburn offer.
The final Saputo offer was unconditional, meaning that accepting shareholders would receive a minimum of $9.00 cash per share irrespective of the level of acceptances, Warrnambool said.
The Murray Goulburn offer remains subject to authorisation by the Australian Competition Tribunal, which will deliver its decision by February 28 at the earliest.
Warrnambool chairman Terry Richardson said Murray Goulburn's offer was highly conditional and carried significant risk.
Meanwhile, the company said it expects earnings in the half year to December 31 to almost double from the same period last year, when it had earnings of $29.3 million.
Improved market conditions in the final three months of the 2012/13 financial year had continued into the 2013/14 financial year, Warrnambool said.
