Fonterra extends Natfoods offer

Fonterra has extended its offer for Australia's largest listed dairy company National Foods, a move widely expected.

Fonterra today said it had extended its A$5.45 ($5.93) a share bid until February 15. The bid was to close on February 1.

Fonterra, New Zealand's biggest company, appears set to revise its bid after it was trumped by a A$6.00 offer from Philippines beer and beverage group San Miguel on December 30.

Fonterra had been tipped to extend its offer in order to see San Miguel bidder's statement, due to be released this month, before considering its next move.

National Foods' board has rejected Fonterra's bid saying it grossly undervalued the company, placing its own value on the group of between A$6.11-A$6.65 per share.

Last week, Australia's competition watchdog gave the green light to Fonterra's takeover bid, conditional on the merged entity divesting some Western Australian assets.

By 11.55 am AEDT (1.55pm NZT), shares in National Foods had eased one cent to A$6.23.

- NZPA