Warrnambool Cheese and Butter looks to offer performance rights to chief executive David Lord Warrnambool Cheese and Butter Factory's finished product. TAKEOVER target Warrnambool Cheese and Butter says it will push ahead with its plan to seek shareholder approval to grant $175,000 in chief executive performance rights, despite concerns from suitor Bega. But in a concession, Warrnambool says it will not grant the rights until it is confident Bega's bid to buy the dairy group will not be successful. The Warrnambool board, which has previously urged investors to reject Bega's takeover bid as too low, said there was a risk Bega could withdraw its offer if the performance rights were officially granted. But the board insisted it was important to put the issue in front of Warrnambool shareholders at the group's annual meeting on Thursday, as performance rights were a key part of chief executive David Lord's salary package. Bega is locked in a three-way takeover tussle for Warrnambool, along with Canadian dairy giant Saputo and farmer co-operative Murray Goulburn. Bega's takeover offer included a condition that no performance rights be granted or issued while the bid remained on the table. "Warrnambool through its lawyers requested Bega waive the condition with respect to the additional performance rights given their purpose and relatively modest number but Bega declined," Warrnambool said yesterday. Warrnambool intends to still put the performance rights resolution to shareholders at the annual meeting as it is an important aspect of Mr Lord's remuneration package. The proposal is to grant Mr Lord performance rights worth up to $175,000, which give him the right to acquire Warrnambool shares for nil consideration if various company performance measures are met. Bega's offer of $2 in cash plus 1.2 Bega shares for each Warrnambool share is currently the lowest of the three on the table. Saputo's proposal of $7 cash for each share has been backed by the Warrnambool board. But co-operative Murray Goulburn swept in on Friday to top the bids with an offer of $7.50 a share, valuing the dairy company at $420 million. Warrnambool said last week it needed time to consider Murray Goulburn's offer before making its response. Warrnambool Cheese and Butter shares closed 2.79 per cent up at $8.11, while Bega shares closed 5.16 per cent up at $4.08.