Toll backs off Tranz Rail as buy-up fails

Australian logistics company Toll Holdings will not renew its takeover bid for Tranz Rail after admitting its $230 million offer has failed.

Toll managing director Paul Little said Toll had no plans to launch another bid for Tranz Rail.

"There is no plan to do anything but get on with running the business," he said.

Little could not say how many of Tranz Rail's 2400 shareholders had accepted the $1.10-a-share offer, which closed on Monday.

He did not expect his company to have won much more than the last-reported 84.2 per cent.

The group had hoped to win 90 per cent of the shares, and thereby have the right to buy the other 10 per cent.

Little said the group had several other options, which he refused to spell out. New Zealand takeover rules prevent Toll from buying shares on the market for 12 months.

After that it is able to buy a maximum of 5 per cent a year.

Its only other option is to make a renewed bid at a higher price.

Toll's bid was thwarted by shareholders including Guardian Trust, which owns 3 per cent, and ACC, with more than 1.5 per cent.

- NZPA