Fonterra directors mull takeover bid

Fonterra's monthly board meeting tomorrow could seal the fate of the dairy giant's $2 billion bid to take over Australian milk company National Foods.

New Zealand's biggest business needs to decide whether to lift its A$6.20 a share bid after Filipino brewer San Miguel last week trumped it with a A$6.40 offer.

Fonterra's $A1.9 billion offer for the 80 per cent of National Foods it does not already own closes on April 19.

Under Australian takeover rules, the farmer co-operative must announce its next move one week before then, which suggests a statement either today or tomorrow.

A holding statement - that Fonterra is again extending its offer - is possible.

Directors will also consider whether this season's farmer milk payout forecast of $4.50 a kilogram of milk solids should be sweetened as international prices run at record highs and the dollar eases against the US greenback.

Chairman Henry van der Heyden said he would be "very surprised" if the forecast was lifted.

It has been raised an unprecedented four times this season already.