NZ Dairy Processor a2 Rejects Takeover Offer, Shares Slip

New Zealand dairy processor a2 Milk Company Ltd rejected a takeover approach on Monday, but said it was considering other potential suitors as foreign firms circle dairy assets in the world's largest milk exporting country.

Shares in a2 Milk, which has a market capitalisation of about $323 million, slumped to a three-week low after it said it had told Australia's Freedom Foods and U.S. food giant Dean Foods that its offer for the company was it was not in the interest of the firm or its shareholders.

"The Board does not consider that the proposal in the Expression of Interest is compelling, and accordingly the Board would not be in a position to recommend it to shareholders," the company said in a statement, referring to the offer made in June.

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