As Toll Holdings steams into the final stretch of the Tranz Rail takeover bid, the Australian company is confident of hitting the 90 per cent target - but also planning for the alternatives.
Managing director Paul Little said Toll was working with Tranz Rail on the make-upof an interim board for the company, in case the bid fell slightly short.
After reaching 90 per cent, a bidder can compulsorily acquire the balance of a company's shares.
Little said that if Toll reached, say, 89 per cent, Tranz Rail could remain as a listed company for a month or two while Toll mopped up the balance.
"The message I'm trying to give you there is that we're not going to walk away from this."
The offer closes on Friday.
Toll is targeting retail investors with the advertising message: "Our final offer and the only offer."
At the close of the market last week, Toll's reported stake stood at 57.3 per cent, but support for the bid is significantly higher, with some institutional investors keen but yet to do the paperwork.
Little said acceptances from retail investors had been "dribbling in".
Falling well short of 90 per cent would be "a major problem".
Falling short by a small margin, "I would be less concerned".
Also coming up this business week:
An insight into the state of the retail sector in the form of the Retail Trade Survey on Wednesday.
A piece of theatre in the shape of Telecom's annual meeting on Thursday, where the Shareholders' Association is promising a highly visible presence.
An expected update on The Campbell Group's $685 million bid for the Fletcher Challenge Forests forestry estate.
