The bidding war over Warrnambool Cheese and Butter Factory Company Holdings Ltd had fanned investor fever of acquisitions in dairy farms and companies over Australia and New Zealand. Warrnambool received its third and higher bid from one of its own shareholders, thus creating speculation that the Australasian dairy could fetch an even bigger offer.

On the same day, China's Shanghai Pengxin had placed an offer to acquire more New zealand dairy farms. The acquisition of assets partly owned by Synlait Farms by Shanghai Pengxin would put the former's company value at NZD85.7 million or USD73 million.

A robust demand for assets in dairy farms was attributed to companies' interest in capitalizing the growing interest for cheese, milk and other dairy products in Asia.

Bega Cheese, who had initially offered a AUD5.78 per share bid to Warrnambool, was also rumored to be an acquisition target as well. However, Bega Executive Chairman Barry Irvin told Reuters that the company has a strong financial position that a company sale is out of the question.

"I think there's feverish speculation going on about everything in the dairy industry at the moment... Bega Cheese is not for sale, we have shareholder caps and such things in place to ensure that that is a reasonably challenging circumstance for anybody that wishes to make a bid on Bega," Irvin said.