Goodman Fielder's board will unanimously support a $A1.37 billion take-over offer from its third largest shareholder, unless a higher offer emerges.
The trans-Tasman food group, whose brands include Meadowlea, Praise, Vogels and Edmonds, says its support also depends on an independent expert recommending the offer.
Singapore-based agribusiness, Wilmar International, in partnership with the Hong-Kong-listed investment business, First Pacific, raised their offer to 70 Australian cents per share after Goodman's board said the previous 65 cent offer materially undervalued the company.
Wilmar is proposing a scheme of arrangement, which needs approval from at least 75 percent of shareholders and, under Australian rules, they must number at least half the shareholders.
That's an easier way to acquire a listed company than a normal take-over, which needs 90 percent of shareholders to accept.