Biggest Australia dairy maker said to draw Yili, Saputo bids

MELBOURNE - Chinese dairy producer Inner Mongolia Yili Industrial Group Co is among bidders that made formal offers for Australia's Murray Goulburn Co-operative Co, in a deal that may value the farmer-owned firm at about A$1 billion ($779 million) including debt, people with knowledge of the matter said.

Suitors including Canadian cheesemaker Saputo Inc and Kirin Holdings Co's Lion Pty unit made non-binding offers by Tuesday's deadline, said the people, who asked not to be identified because the details are private. Murray Goulburn will decide later this month on a shortlist of bidders, who will be invited to management presentations and site visits ahead of final offers, according to the people.

Australia's biggest dairy processor and adviser Deutsche Bank AG received several unsolicited indicative proposals earlier this year after announcing a strategic review. The company reported an A$371 million net loss in the financial year that ended June after it cut the price it pays dairy farmers and milk production fell.