Cornerstone shareholder Freedom Foods Group of Australia and US-based Dean Foods Company lodged ''expressions of interest'' in a2 Milk Company (ATM) last month, but yesterday ATM's managing director Geoffrey Babidge said the offer was not ''compelling'', and the board would not be recommending it to shareholders.
However, he did not entirely close the door on the offer, saying ATM's board was willing to have discussions on the offer, subject to confidentiality, but he also said more parties had since come forward.
''The board has also received other confidential inquiries indicating potential interest in the company, and is in the course of evaluating these,'' Mr Babidge said in a statement.
The Freedom-Dean expression of interest did not include an offer per share.
The price subsequently shot up from 57c to 72c.
ATM shares were trading down slightly at 72c, following yesterday's bid rejection, and a separate trading update.
Brokers Craigs Investment Partners put a ''bid valuation'' at around $1.17 per share, Forsyth Barr at $1.03, while the Australian Financial Review went up to $2.
ATM's trading update said the company ''continues to perform strongly, and ahead of plan''.
The full year 2015, to the end of June, was expected to deliver a 39% increase in group revenue, against the previous year, to $154million.
That gain was largely the result of $41million of infant formula sales in New Zealand, Australia and China and milk sales in Australia up 8% to $110million.
ATM yesterday upgraded its forecast group revenues for 2016, up more than 14%, from the previous forecast of $230million to $267million, on expectations of further growth in its infant formula markets, new product launches in Australia and New Zealand of whole milk powder and ice cream, plus increasing milk sales in its fledgling US market.
''New long-term milk supply contracts with key milk suppliers in Australia and New Zealand have been negotiated to support growing demand,'' ATM said.
