Tranz Rail repeats Toll advice

Tranz Rail's board yesterday reiterated its recommendation that shareholders should not accept Toll Holdings' takeover bid, saying discussions with the Australian company about improving the offer had been limited.

Toll has extended the deadline for its offer from August 29 until September 26 but has not changed the 95c a share price, or the condition of 90 per cent acceptances.

"Tranz Rail understands why Toll needed to extend its offer and wants to emphasise that an extended offer period has no impact on the company's financial stability," said chairman Wayne Walden. Cashflow was tracking ahead of forecast and would see the company through seasonal lows.

Toll Holdings chief executive Paul Little was quoted in the Australian Financial Review on Wednesday saying Toll remained concerned about problems at Tranz Rail and was looking at ways to assist the company to be viable. Tranz Rail shares closed at 98c yesterday, above Toll's 95c offer price, which has been rejected by institutional shareholders.