Third Avenue achieves blocking stake in Toll

A New York investment broker frustrating Toll Group's complete takeover of the former Tranz Rail has made its position official.

Third Avenue Management yesterday told the NZX it had lifted its stake in the rail/road company to 10.01 per cent, confirming its interest in the former sharemarket laggard's turnaround under Toll's Australian masters is more than that of a cheerleader.

ABN Amro head of research James Miller agreed that while Third Avenue could be following the money because the rail company was doing well under Toll's leadership, "crossing the 10 per cent line" had given it a blocking stake. Third Avenue lifted its stake from 9.37 per cent.

Melbourne-based Toll chief executive Paul Little had no comment to make about Third Avenue's move.

One analyst, who would not be named, said as long as Little remained "emotional" about Third Avenue standing in the way of his delisting the former Tranz Rail, "the Americans will be rubbing their hands waiting to see what happens".