wessex19
10th May 2006, 23:26
By Lisa Murray
May 11, 2006
TOLL Holdings last night seized control of Patrick Corp, bringing to an end one of the country's most dramatic takeover battles.
More than eight months after lobbing its first bid for the transport group, Toll's upgraded $6.3 billion offer got over the line last night, as its holding moved past 50.1 per cent. The offer will be declared unconditional this morning and payment terms will be accelerated so that accepting shareholders are paid within five working days.
Early yesterday Toll said its stake had moved up to 31.56 per cent and a source close to the company said "there was a lot of movement" during the day. It will officially update the market on its stake this morning.
Toll's offer was given a kick along yesterday after Macquarie pulled the plug on a last-minute rival bid because it lost the support of its key partner, the Singapore-government owned ports operator PSA.
PSA withdrew after Toll started legal action to prevent Patrick chairman Peter Scanlon and its managing director, Chris Corrigan, from assisting Macquarie in its bid. The transport group and its adviser, Carnegie Wylie, also embarked on an aggressive campaign to discredit Macquarie's offer.
A source close to the bank confirmed yesterday it was looking at its legal options and could make a formal complaint to the corporate regulator over the matter.
Meanwhile, rumours persisted yesterday that Mr Corrigan would opt to sell his 3 per cent stake in Patrick on the market rather than accept Toll's bid. But a spokesman for Patrick said yesterday he would sell most of his holding into the bid.
Mr Corrigan will face investors and analysts today at Patrick's first-half earnings briefing. Questions about the bitter takeover battle are likely to overshadow the result and investors might get their first real indication of how much it has cost Patrick. Goldman Sachs JB Were analysts are forecasting a $108 million net profit and an interim dividend of 8c.
Would-be suitor Macquarie reports its full-year results next Tuesday and analysts are expecting a net profit of nearly $950 million.
ABN Amro analysts said yesterday that Macquarie's decision to pull out of the race for Patrick was positive for the bank.
"While some fees may be forgone, we were of the opinion that the potential bid was always opportunistic and as such unlikely to eventuate," it said in a note.
"We do not believe the Patrick approach was made in order to plug a hole in [Macquarie's] M&A pipeline. On the contrary, Macquarie's international expansion continues apace with staff growth of around 20 per cent over the year, most of which is overseas."
Shares in Macquarie rose 74c to $70.90, Patrick shares were up 12c at $8.90 and Toll jumped 42c to $15.
May 11, 2006
TOLL Holdings last night seized control of Patrick Corp, bringing to an end one of the country's most dramatic takeover battles.
More than eight months after lobbing its first bid for the transport group, Toll's upgraded $6.3 billion offer got over the line last night, as its holding moved past 50.1 per cent. The offer will be declared unconditional this morning and payment terms will be accelerated so that accepting shareholders are paid within five working days.
Early yesterday Toll said its stake had moved up to 31.56 per cent and a source close to the company said "there was a lot of movement" during the day. It will officially update the market on its stake this morning.
Toll's offer was given a kick along yesterday after Macquarie pulled the plug on a last-minute rival bid because it lost the support of its key partner, the Singapore-government owned ports operator PSA.
PSA withdrew after Toll started legal action to prevent Patrick chairman Peter Scanlon and its managing director, Chris Corrigan, from assisting Macquarie in its bid. The transport group and its adviser, Carnegie Wylie, also embarked on an aggressive campaign to discredit Macquarie's offer.
A source close to the bank confirmed yesterday it was looking at its legal options and could make a formal complaint to the corporate regulator over the matter.
Meanwhile, rumours persisted yesterday that Mr Corrigan would opt to sell his 3 per cent stake in Patrick on the market rather than accept Toll's bid. But a spokesman for Patrick said yesterday he would sell most of his holding into the bid.
Mr Corrigan will face investors and analysts today at Patrick's first-half earnings briefing. Questions about the bitter takeover battle are likely to overshadow the result and investors might get their first real indication of how much it has cost Patrick. Goldman Sachs JB Were analysts are forecasting a $108 million net profit and an interim dividend of 8c.
Would-be suitor Macquarie reports its full-year results next Tuesday and analysts are expecting a net profit of nearly $950 million.
ABN Amro analysts said yesterday that Macquarie's decision to pull out of the race for Patrick was positive for the bank.
"While some fees may be forgone, we were of the opinion that the potential bid was always opportunistic and as such unlikely to eventuate," it said in a note.
"We do not believe the Patrick approach was made in order to plug a hole in [Macquarie's] M&A pipeline. On the contrary, Macquarie's international expansion continues apace with staff growth of around 20 per cent over the year, most of which is overseas."
Shares in Macquarie rose 74c to $70.90, Patrick shares were up 12c at $8.90 and Toll jumped 42c to $15.