THE outcome of the WCB takeover battle may have been different if the Foreign Investment Review Board (FIRB) had not given Saputo clearance to immediately pursue its bid.
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In doing so, it gave Saputo a valuable head start on rival Murray Goulburn whose proposal is still awaiting clearance by the Australian Competition Tribunal.
Murray Goulburn managing director Gary Helou was angered by Saputo's unconditional clearance.
He told a shareholder meeting in Warrnambool in November the process would have been fairer if Saputo had been forced to wait until the co-operative's application had been heard.
"We are not on a level playing field because of the regulatory process. If the FIRB had placed this condition on Saputo we would then have a fair process," Mr Helou said.
As the battle played out, Saputo's head start gave it powerful leverage over major shareholders and proved crucial to its success.
When Bega Cheese sold its stake to Saputo last week, executive chairman Barry Irvin said it was his preference to sell to Murray Goulburn and keep WCB Australian-owned.
However, the risk of Murray Goulburn not gaining approval after Saputo's offer expired compelled a sale to Saputo in the interests of Bega shareholders.
Fund managers who sold in recent days gave the same reason for selling. Their decisions were influenced directly by the disjointed regulatory system.
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shynes@fairfaxmedia.com.au
