Bega shares up as it weighs WCB bid strategy BEGA Cheese is headed for a board meeting later this week to consider changes to its bid for Warrnambool Cheese & Butter, with its price in the ascendancy amid continued buying from Fonterra. Bega shares tipped over $5 to trade as high as $5.15 yesterday, making its cash-and-scrip offer for Warrnambool more valuable than the $8 cash bid from Canada's Saputo. Global dairy giant Fonterra was again said to be in the market for Bega shares, via broker Goldman Sachs, to fulfil its aim of securing a 10 per cent stake in the local dairy processing outfit. It held 6.2 per cent from buying on Friday, but with shares spending much of the day above its stated limit of $4.95 a share, there were suggestions that other buyers may have opportunistically pushed the shares higher, or that Fonterra was having to bid more aggressively to secure what would amount to a blocking stake if Bega itself became a target. At the close Bega shares were at $5.05, meaning its offer to Warrnambool shareholders of $2 cash and 1.2 Bega shares for every Warrnambool share was worth $8.06, against $8 for Saputo. Warrnambool shares traded another 9c higher to $8.36 yesterday, suggesting that some investors see the bid price rising further. Saputo is relying on the fact that its offer is all cash, and a pitch to dairy farmers that the Canadians will maintain, or even increase, competition for milk and push milk prices higher. A deal with either Bega or Murray Goulburn would lead to further consolidation in the industry but create a bigger local player in what analysts see as a fast-expanding international market. Bega's board is due to meet on Thursday to decide whether to modify its bid, either by making it unconditional and testing investor support, or by changing the terms to give Warrnambool shareholders a larger stake in the merged companies than the 25 per cent suggested by the current offer price. Warrnambool has become the subject of an unprecedented international bidding war, with Saputo attempting to wrest control of the company from rival players Bega and Murray Goulburn, both of which have made their own offers. Bega owns 17 per cent of Warrnambool and Murray Goulburn 17.7 per cent. But Japanese-owned Lion has bought a 10 per cent stake in the company to protect its relationship with Warrnambool on cheese-making, marketing and distribution. Fonterra has also moved to protect its interests by attempting o secure a 10 per cent stake in Bega. Sources suggested that Bega could be the next target for Saputo if it was unable to secure control of Warrnambool with its present bid. Warrnambool is due to produce a target statement setting out its support for the Saputo bid by the end of next week, and it is speculated that the Canadians may be prepared to take additional steps to secure either of the large blocks of shares held by Warrnambool's rivals. Murray Goulburn chief executive Gary Helou has set out ambitious plans to create a leading global industry player, leading to suggestions it could lift its $7.50-a-share bid.