A CLIFFHANGER vote at Bega Cheese's annual general meeting suggests its biggest shareholder is looking for a way out.
When Bega listed in 2011, a maximum shareholding limit of 5 per cent was put in place to allow the former farmer co-operative to keep predators at bay.
That limit subsequently increased to 10 per cent and, after Tuesday's meeting, it will increase to 15 per cent for five years, after which it will disappear.
A resolution to keep the cap in place passed on Tuesday, with 37.9 million votes for and 37.7 million votes against.
The large vote against suggested that investors including Perpetual, Karara Capital and New Zealand dairy giant Fonterra all voted to have it removed.
Fonterra snapped up a 10 per cent stake in Bega during the takeover battle for Warrnambool Cheese & Butter to protect its commercial relationships with the NSW-based company.
However, it has been suggested Fonterra, which has previously been seen as an acquirer of Bega, is looking to sell its stake. If the Auckland-based company did vote against the cap it implies it is indeed preparing to sell out and wants to improve liquidity in the stock before it starts to sell down.
Such a move would raise big questions for the future of Fonterra's sizeable Australian business, which has been a dead weight on the company.
Dairy has been a red hot sector for takeover activity and both Parmalat and Saputo have declared their intent to keep buying businesses, while Freedom Foods and US outfit Deans Foods recently tried to buy ASX-listed a2 Milk.
