Saputo's Offer For Warrnambool Leaves Door Open For Better Bid

SYDNEY – Saputo Inc's failure to deliver a knockout offer in the three-way battle to take over Australia's oldest dairy company is leaving the door open for a better bid.

The target Warrnambool Cheese and Butter Factory Co surged to a record A$9.39 in Sydney trading on Monday, fuelled by market speculation that the months-long takeover battle has further to run.

The dairy company has doubled in value since Bega Cheese Ltd , its biggest shareholder, made the first takeover approach in September. Some analysts say the sector risks becoming overvalued.

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