The chief executive of New Zealand's Fonterra, Andrew Ferrier, has put his hand up to consolidate the local dairy industry by making a $1.62 billion bid for National Foods in a deal also aimed at frustrating the Melbourne company's own acquisition plans. National Foods, which is in $450 merger talks with tinned fruit concern SPC Ardmona, yesterday rejected Fonterra's conditional $5.45 a share cash offer "on the basis that it significantly undervalues the company, given its financial track record and strong earnings prospects".