Toll extends $1.10 offer for Tranz Rail

By PAM GRAHAM

Toll Holdings yesterday extended its $1.10 a share offer for Tranz Rail until December 22 even as the shares traded at $1.46 on the stock exchange.

Toll now has 84.2 per cent of Tranz Rail and if it reaches 85 per cent it can "creep" to 90 per cent within 12 months. At that level it can compulsorily acquire remaining shares.

Toll was keeping the offer open because it was "surprisingly" still getting some acceptances, said managing director Paul Little.

Three funds have publicly stated they are not accepting. Guardian Trust Funds Management has said it has 3 per cent and that it was buying more shares above $1.10.

New Zealand Investment Trust has 0.7 per cent and according to the last annual report, Accident Compensation Corporation had 0.7 per cent. There is also believed to be about 2 per cent in AMP Henderson's passively managed funds that will be sold at an unknown point.

After Toll closes the offer, it can make a new offer to all shareholders, with the usual procedures of a notice period and an independent report. Under creep provisions, it can buy up to 5 per cent in a 12-month period. "We are now managing the business and that is the most important thing," said Little.

Small shareholder Martin van Zonneveld, who has been running a website on the takeover, sent a letter to remaining shareholders this week. He wants shareholders to "hang in there because the train has not hit the final station".

Toll sent a letter to shareholders dated November 3, advising them that the offer was closing on November 7.

Van Zonneveld's website has a September message in the name of Paul Little, saying: "Shareholders who think I am going to raise my offer above $1.10 are piddling into a strong northwesterly".