A months-long fight for Australia's oldest dairy firm battles on into the new year as local bidder Murray Goulburn Co-operative refuses to concede to rival suitor Canada's Saputo, which has already secured regulatory approval.

Murray Goulburn said yesterday it may increase its stake in Warrnambool Cheese and Butter Factory Holdings via on-market purchases.

The company also said it expects a regulatory decision on its Australian $530 million offer by the end of February.

That is well short of the three to six months that analysts had anticipated the Australian Competition Tribunal might take to reach a decision, potentially breathing new life into the Murray Goulburn offer. At stake is a platform for rapidly growing sales of traditional dairy products and high-tech milk extracts into China. – (Reuters)