Bega Cheese's share prices rose to a record high after Fonterra Cooperative Group had purchased a 6% share in the cheese maker. The share values increased by as much as 12$ before trading nearly 9% higher at AUD4.79 per share as of mid morning trading. 

Fonterra is the world's biggest dairy exporter and it had purchased the shareholdings at AUD4.95 per share in the New South Wales based cheese maker after market had closed yesterday.

With the purchase, the value of Bega's offer for Warrnambool Cheese and Butter Factory Co increased to a high of AUD7.93. This though is still less than the offer of Montreal's Saputo Inc, which priced the offer at AUD8.00 per share. Another bidder for Warrnambool is Murray Goulborn Cooperative Co.

According to Fonterra CEO Theo Spierings, through a statement, said, "There has recently been a lot of consolidation activity in the Australian dairy industry. It is important that Fonterra participates and we have confidence in Bega and the strategy it is pursuing."