Toll takeover in 'disarray'

A A$4.6 billion ($4.9 billion) takeover offer for Patrick Corp by transport group Toll Holdings is in disarray, says Patrick chief executive Chris Corrigan.

Patrick - Australia's biggest port cargo handler - last week rejected Toll's offer, describing it as materially inadequate.

Independent expert Lonergan Edwards had valued Patrick shares at A$7.75 to A$8.31, well above the Toll offer of cash and scrip that initially valued them at A$6.70.

Corrigan said on Saturday that Patrick was not trying to cut the bid off altogether, but would not accept the offer at its current price.

"We are not trying to kill [the deal] off, we are simply trying to illustrate the difference between the value of Patrick ... and Toll," he said.

"I think, frankly, the Toll bid is in disarray, it is bogged down and Toll are looking increasingly desperate to acquire Patrick.

"The only way Toll can get out of this is to lift their bid markedly."

However, Toll managing director Paul Little said his company would not increase its bid, and blamed Patrick for the slip in Toll's share price from around A$14 at the end of last month, to Friday's A$11.92 close.

"We wouldn't say the bid is sliding at all. The share price has been under pressure mainly because of the dispute that has been fuelled by Patrick in relation to Pacific National," Little said.

"We are working on trying to ensure that the value creation that this bid puts together is fully understood by our shareholders and Patrick's shareholders."

The Pacific National joint venture has been caught up in the takeover battle as the two shareholders dispute a freight arrangement between a Toll subsidiary and Pacific National.

If the dispute is not resolved, Pacific National could be split up and sold, Corrigan said.

"As each day passes, it is becoming increasingly difficult to see how we could go on working with Toll," he said.

When asked if a break-up of Pacific National was inevitable, he said: "It probably is inevitable ... I think it is very likely.

"We will have a board meeting on Monday and we will be discussing these issues, I presume."

Little, however, said Pacific National would not be broken up and sold.

"Our view is that it is a strong business and it shouldn't be and won't be split up."

- AAP