Bega Cheese has increased its takeover offer for Warrnambool Cheese and Butter, but it doesn’t match the $505 million offered by rival Murray Goulburn.

Bega Cheese on Thursday said it was now offering 1.5 of its shares plus $2 cash for each Warrnambool share, which equates to $8.87 per share. It earlier offered 1.2 shares plus $2 cash.

Murray Goulburn on Wednesday offered $9 for each Warrnambool share.

Canadian dairy giant Saputo, which until a few days ago was Warrnambool’s preferred bidder, has offered $8 for each share.

Bega Cheese said its new offer was unconditional, while the rival two bids remain subject to conditions.

It also said the offer would not be raised further.

“Bega Cheese intends to preserve the Warrnambool Cheese and Butter name, operating sites and brands, and has no intention to close the Warrnambool Cheese and Butter head office or the Allansford or Mil Lel sites,” it said.

Warrnambool is yet to respond to Bega Cheese’s new offer.