move on patrick

http://finance.news.com.au/story/0,10166,19033806-462,00.html

MACQUARIE Bank threw a spanner in the works of Toll Holdings' $5.8 billion takeover bid for Patrick Corp today, with the investment bank looking at trumping Toll's bid for the stevedore.
Macquarie (mbl.ASX:Quote,News) today announced it would establish a consortium with a view to making an all-cash offer for Patrick (prk.ASX:Quote,News) at a premium to Toll's current bid.

Toll's (tol.ASX:Quote,News) bid was finally accepted by the Patrick board last month after they had resisted the rival's overtures for eight months.

However, Macquarie said final commitments from all parties to the potential transaction had not yet been received.

"Any offer by the consortium will be contingent upon receiving these commitments, as well as a recommendation from the board of Patrick," Macquarie said.

"As a result, there is no certainty that any such offer will proceed."

Macquarie said it intended to participate in the consortium.

Patrick said it had not received any offer from Macquarie yet but that the bank had sought to engage in talks regarding a possible rival proposal to Toll's bid.

"Patrick advised Macquarie of the terms of its co-operation deed with Toll as summarised by Toll in its ninth bidder's statement including not to solicit an offer," Patrick company secretary William Hara said.

Toll later said it would comment on the proposal only if a bid materialised.

"Toll notes the announcement by Macquarie Bank this morning regarding Patrick and market speculation that it might seek to lead a highly-leveraged bid for Patrick," the company said in a statement.

"Toll will only comment on such a proposal if any such proposal materialises."

Toll said its $5.8 billion takeover offer for Patrick was scheduled to close next Friday, May 12, and Patrick shareholders should receive their consideration from Toll shortly thereafter.

Toll said its offer for Patrick was valued at $9.20 per Patrick share using the median brokers' valuation for Toll once it had completed the Patrick acquisition. Shares in Patrick and Macquarie Bank rose and Toll fell when they resumed trading after a halt on the Australian Stock Exchange today.

At 1220 AEST, Patrick was up 31 cents to $9.01, Macquarie had added $1.10 to $70.61, and Toll was down 57 cents to $13.20.

Aequs Securities institutional dealer Ric Klusman said the move by Macquarie into the takeover battle was looking "pretty good" for Patrick and Macquarie and bad for Toll.

"It's a no-win for Toll. Macquarie is in the box seat," he said.

Mr Klusman said Toll needed Patrick, and if Toll did not succeed in its takeover bid, it would hurt Toll.

But it would also be bad for Toll if it were forced to try to outbid Macquarie.

In mid-April, following a long and bitter fight to resist Toll's bid, the Patrick board recommended that shareholders accept an increased $5.8 billion takeover offer from Toll, in the absence of a higher offer.

Most market observers believed that Patrick's acceptance had effectively ended the eight-month takeover battle launched in August 2005 and paved the way for the formation of one of the world's largest transport and logistics groups.

Macquarie Bank had been mooted as a possible player in the takeover stoush but such a late entry into the takeover battle had been considered unlikely.

Toll's last cash-and-scrip offer of 0.4 Toll shares and $3 in cash for each Patrick share valued Patrick at $8.26 a share at the time it was made last month.