Murray Goulburn hints at lifting its bid for WCB MURRAY Goulburn Co-operative is making bold claims over benefits to Australian dairy farmers from its proposed takeover of Warrnambool Cheese and Butter Factory, while saying it has boosted its firepower to $770 million to complete the acquisition - hinting it could improve its $9.50 a share offer. Australia and New Zealand Banking Group, National Australia Bank and Westpac Banking Corp have given the Melbourne-based dairy cooperative a $350 million credit line, adding to an existing $420 million syndicated loan facility. Murray Goulburn, Canadian giant Saputo and local rival Bega Cheese are in a long-running bidding war for WCB. In its bidder's statement lodged with the ASX - that does not stipulate when its $9.50 a share offer closes - Murray Goulburn says it wishes to match a payment of as much as $1.31 a share in special dividends previously offered by Warrnambool to rival bidder Saputo. If Murray Goulburn can get those Warrnambool franking credit benefits, the value of its takeover offer for Warrnambool goes as high as $10.81 a share. Warrnambool shares yesterday closed at $9.25. Acquiring between 50 per cent and 100 per cent of Warrnambool will cost Murray Goulburn between $173 million and $439 million. This would increase Murray Goulburn's gearing to approximately 57 per cent, up from 43 per cent as of June 30 this year. Still, Murray Goulburn's current $9.50 a share takeover offer for Warrnambool is conditional on it garnering more than a 50 per cent stake in the target. The cooperative states it is "confident in its approach of satisfying ACCC/Australian Competition Tribunal condition associated with the offer." Yet Murray Goulburn admits "there is a measure of overlap in the business activities of Murray Goulburn and Warrnambool in the acquisition of raw milk and they operative in similar geographical regions." But the cooperative is confident the Tribunal will rule in its favour because it will take "into account the net public benefits of the transaction." "In making its intended application to the Tribunal, Murray Goulburn will lead evidence to establish significant public benefits driven by substantial efficiency gains, increased scale and international expansion opportunities, particularly in fast-growing consumer markets in Asia," the ASX statement says. Gary Helou, Murray Goulburn's managing director, has said Australia needs a global dairy champion such as New Zealand's Fonterra. Murray Goulburn expects the tribunal to make a decision on or around February 28 next year, and by no later than May 30, 2014. Appealing to Warrnambool shareholders to wait and accept its offer, Murray Goulburn makes bold claims. "By accepting Murray Goulburn's offer you will eliminate your exposure to the risks and uncertainties inherent in owning Warrnambool shares including exposure to the volatility and cyclicality of international diary commodity prices, risk of severe weather events such as drought, risk from the loss of milk supply or the decline in milk production, foreign exchange risk and equity market risk," the ASX statement says. Lazard and Herbert Smith Freehills are advising Murray Goulburn. Meanwhile, Warrnambool shares went into a trading halt today, pending the release of a Takeovers Panel announcement about the off-market takeover bid from Saputo. In a statement to the Australian Securities Exchange, WCB said it expects to make an announcement about the outcome of the Takeovers Panel proceedings today. WCB expects the trading halt will cease on the release of the announcement or at the start of normal trade on December 18, whichever is earlier.