The takeover battle for Warrnambool Cheese and Butter (WCB) has escalated, with Canadian giant Saputo lifting its offer to $449 million.

Saputo has lifted its offer to $8 a share to best dairy co-operative Murray Goulburn’s offer of $7.50 a share.

The Warrnambool board earlier backed the Saputo offer and urged shareholders to reject the Murray Goulburn bid, along with an offer from Bega Cheese.

“The board carefully considered both the Murray Goulburn proposal and Saputo’s revised offer before coming to its decision to recommend the revised Saputo offer in the absence of a superior proposal,” Warrnambool chairman Terry Richardson said on Friday.

“In addition to the attractive price offered to shareholders, the WCB board takes comfort in Saputo’s assurances to suppliers and employees, as well as its intentions to invest in WCB’s assets and pay a leading competitive milk price.”

Saputo had previously tabled an offer of $7 a share.

The dairy said its takeover offer represented greater certainty for shareholders because, unlike the Murray Goulburn and Bega offers, it is not subject to approval from the Australian Competition and Consumer Commission.

However, the Saputo deal would be subject to approval from the Foreign Investment Review Board.

Both Saputo and Murray Goulburn have said a takeover of Warrnambool would help them to take advantage of growing demand in Asia for dairy products.

Warrnambool shares have been placed in a trading halt until 1100 AEDT, but finished Thursday’s session at $8.15.

Murray Goulburn and Bega are Warrnambool’s biggest shareholders with each owning more than 17 per cent of the company.