Canadian dairy giant Saputo is set to raise its takeover offer for Warrnambool Cheese and Butter after rival bidders trumped its previous offer.

Warrnambool shares were halted from trade on Friday after the company said it was negotiating a proposed revised offer from Saputo.

The Canadian company originally offered $7 each Warrnambool share, then increased that to $8, a bid that was welcomed by the target’s board.

But, this week, that bid was trumped by Murray Goulburn, which increased its offer to $9 per share, valuing the takeover target at $505 million.

The third bidder in the battle for Warrnambool, Bega Cheese, has also increased its original 1.2 shares plus $2 cash offer, to 1.5 of its shares plus $2 in cash for each Warrnambool share.

At the time Bega Cheese increased its offer, it was worth $8.87 per Warrnambool share.

Details of Saputo’s increased offer are expected to be released on Monday.

Bega Cheese said its increased offer has been accepted by 20 Warrnambool shareholders, who own 22,392 shares.

That equates to 0.04 per cent of Warrnambool shares, taking Bega’s stake closer to 18 per cent.

Bega shares rose, gaining 30 cents, or 6.7 per cent, to $4.75.