Lion Australia has put its dairy business back on the block to test offers for a quick sale, following the federal government’s rejection of the planned $600 million sale to China-based Mengniu. Lion has decided to test local interest to ensure a sale without triggering regulatory delays. At least two parties have expressed interest — Tanarra Capital Pty Ltd. and Bega Cheese Limited (ASX:BGA) but other offers are expected. A joint bid is possible, with some assets like flavoured milk attractive to the likes of Coca-Cola Amatil. If no suitable offer is forthcoming in the short term the company will hang on to the asset under its highly regarded boss Kathy Karabatsas.