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

Warrnambool shares were placed in a trading halt on Friday after the company said it was negotiating a proposed revised offer from Saputo.

The Canadian company has offered $8 for each Warrnambool share, a bid that was welcomed by the target’s board.

But this week that offer 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.

Warrnambool says it expects to announce details of Saputo’s increased offer on Friday, or Monday November 18.