The a2 Milk Company Ltd (Australia) (ASX: A2M) share price is up 2% to $5.26 in trade today as rumours continue to sweep the market that it is poised to make a takeover bid for dairy faming collective Murray Goulburn.
In response to the rumours being reported in the News Corp press shares in the MG Unit Trust (ASX: MGC) are up nearly 5% this afternoon, with a2 Milk's management reportedly having hired Goldman Sachs to advise on how to structure any takeover bid.
For the year ending June 30 2017 Murray Goulburn delivered an underlying profit of $34.7 million on revenues of $2.5 billion, but failed to declare a dividend with net debt standing at $445 million. The collective itself admitting FY 2017 was a "challenging year", with the shares down 53% over the last 12 months.
Others rumoured to be interested in buying Murray Goulburn include Goodman Fielder, Parmalat, Saputo and Bega Cheese Ltd (ASX: BGA).
