A third suitor, a consortium of Parmalat's Austalian operations and Murray Goulburn, has shown its hand in the jostling among bidders to acquire or merge with the large NSW based dairy co-operative, Dairy Farmers.
Dairy Farmers, owned by 2000 farmer shareholders, has put itself up for auction after long discussions about changing from a cooperative into a listed company.
It has solicited bidders as part of its long stated aim of seeking outside investment, having prepared the ground by an aggressive rationalisation of manufacturing plants and brands.
Its brands include nationally recognised Dairy Farmers milk, Coon and Cracker Barrel cheeses.
Parmalat, the parent company of Pauls brand so prominent in Qld, is a subsidiary of the big Italian world group which recently underwent a major restructure following huge financial losses.
But the Australian operation has been insulated from the overseas fallout.
Murray Goulburn is the giant Victorian-based cooperative with 3500 shareholders - Australia's biggest dairy cooperative known, especially, for its Devondale brand.
The new consortium has asked the Australian Competition and Consumer Commission (ACCC) to indicate whether it has any concerns that would need to be overcome before it makes a bid for Dairy Farmers.
National Foods, owned by the Japanese company, Kirin, and the New Zealand giant co-operative Fonterra, have already made similar approaches to the ACCC - clearance from the ACCC is required by Dairy Farmers before bids will be considered.
* Extract from report in the Australian Financial Review May 20, with further details to be published in The Land, NSW, May 22.