Toll may raise stalled Patrick bid by 20pc

SYDNEY - Toll Holdings may raise its stalled hostile bid for Patrick Corp by 20 per cent to A$5 billion ($5.6 billion), local media said yesterday.

Toll is fighting the antitrust regulator - which has blocked the cash and share bid on competition grounds - in court and said on Tuesday it would file new undertakings in the Federal Court this week to try to smooth over the Australian Competition and Consumer Commission's concerns.

Citing Toll managing director Paul Little, The Australian daily national newspaper said Toll was reviewing the bid's structure.

"We've lost none of our enthusiasm for the Patrick deal but clearly it needs to be restructured. We believe any restructured bid would need to contain more cash," Little told the newspaper.

Based on Tuesday's closing prices, the Toll bid now values Patrick at A$3.9 billion, or A$5.61 a share, a 22 per cent discount to Patrick's A$6.85 close on Tuesday.

The regulator has taken Toll to the Federal Court in what is expected to be a lengthy battle to try to get a ruling to scuttle the proposed Patrick takeover.

Toll launched a share-and-cash offer for Patrick, Australia's biggest stevedore, last August.

- REUTERS