Canadian dairy company Saputo raised its takeover offer for Australia's Warrnambool Cheese and Butter Factory Co Holdings (WCB) by 12.5 per cent yesterday, and Warrnambool's board unanimously recommended it.

Saputo, Canada's largest dairy company, has been bidding against WCB shareholders Bega Cheese and Murray Goulburn Co-operative, chasing WCB for its export connections to Asia, where demand for both for its basic dairy produce and high-tech milk extracts is surging.

Saputo’s new bid, at nine Australian dollars a share, values Australia’s oldest dairy company at €350 million, making it the world’s most expensive dairy company on a price-to-earnings basis.

To win the battle Saputo said it would remove all conditions from its offer. – (Reuters)