WCB board puts Saputo in pole position Warrnambool Cheese & Butter is set to say in its target's statement that the uncertain value and timing of Murray Goulburn's $9.50 a share cash bid, as well as its competition approval condition, render the farmer co-operative's bid inferior to Canadian giant Saputo's $9 cash offer. Warrnambool Cheese & Butter (WCB) will lodge its target's statement in response to Murray Goulburn's offer this week and possibly as early as Monday. The listed Victorian dairy group has recommended Saputo's offer - which is due to close on Friday unless extended - and has recommended shareholders reject Murray Goulburn. Murray Goulburn's $530 million offer is conditional on getting 50.1 per cent of WCB and on receiving merger authorisation from the Australian Competition Tribunal. The WCB board has persistently pointed to the conditions on Murray Goulburn's bid as a reason not to engage with its offer, and will do so again in its latest target's statement. WCB is also disappointed by what it perceives as a lack of detail in Murray Goulburn's bidder's statement compared with its submission to the Tribunal. Murray Goulburn must persuade the Tribunal that any reduction of local competition from its proposed WCB takeover would be outweighed by public benefits such as increased exports. A source close to the matter said that Murray Goulburn's Tribunal submission was full of detail around rationalisation of WCB's operations and synergies (cost savings) from eradicating duplication where the two companies overlap in Victoria's south-west. By contrast Murray Goulburn's bidder's statement - which is sent to WCB shareholders - has no such detail. Around 30 per cent to 40 per cent of WCB's share register is held by Warrnambool region locals, many of whom are dairy farmers in the region who care about local jobs and post-acquisition intentions with the WCB business. Both Saputo and Bega Cheese - which dropped out of the WCB takeover race in December - took pains to reassure stakeholders that WCB's corporate identity, plants and job numbers would be maintained. On Tuesday Tribunal president Justice John Mansfield will preside over a case management hearing in Melbourne concerning Murray Goulburn's application. The hearing is expected to be procedural in nature but will be watched closely for any indication of the panel's thinking on the application. The hearing proper is scheduled to commence on February 10 and will run for five days. The Tribunal is expected to reach a decision by February 14 but may extend its deliberations for another 90 days. While Murray Goulburn's offer is still being held up by the regulator, Saputo will press the attack this week with advertising and shareholder engagement to try and reignite the momentum behind its offer. Saputo currently has a stake of a little over 18 per cent in WCB. The big question is whether Bega Cheese, which owns 18.8 per cent of WCB, will feel the pressure to sell into Saputo's offer before it closes on Friday rather than run the risk of missing the cash windfall from selling its stake. Saputo has given no indication of whether it will extend its offer. Bega kicked off the drawn out takeover battle in September and Saputo is likely to use the Friday deadline to exert as much pressure on shareholders - including Bega - to accept its offer. Securing Bega's stake is key to winning the WCB prize. Murray Goulburn owns 17.7 per cent of WCB and Japanese-owned Lion owns 10 per cent of WCB. Lion secured its stake to protect commercial cheese supply contracts with WCB and is unlikely to make its move until the winning bidder is clear.