headache

Patricks/Toll just gives me a headache. MBL have pulled out for now but I reckon they will be back if Patricks get the offer postponed and succeed in Court that they have the right to accept the best offer. Who knows. I bet Tol investors must want to shoot themselves and I don't know if I want to be part of it so think I will ignore it from now on until its finalised...

Market Up As Patrick Becomes Messy, Govt To Write Down Its Telstra Stake In Budget
May 09 2006 - Australasian Investment Review – (AIR)

A very strong day on the market with the All Ords up 64 points to 5273 points, close to its all time high.

That was a very strong rise ahead of a Federal Budget, but it has been extensively leaked to the point that the budget lock up tomorrow afternoon in Canberra seems a waste of time.

Our market rose after Wall Street reached the highest point since January 2000 last Friday. We also had strong gold and oil prices to help, plus the takeover battle for Patrick.

That's become very messy with lawyers at 20 paces or thereabouts as Toll has sued Patrick.

Nothing from Macquarie Bank on its possible $9 a Patrick share consortium fee generating offer but there was a lot of action from Toll which launched a court action Monday afternoon

Toll is challenging the ability of Patrick chairman, Peter Scanlon, and CEO Chris Corrigan to accept any bid other than Toll's. Mr Scanlon has agreed not to deal in his shares until Wednesday afternoon and the case resumes in court on Wednesday morning.

The Macquarie bid was expected to emerge Tuesday afternoon or Wednesday amid all the speculation on the budget. The Toll legal action is likely to delay that.

Toll says its offer will close on Friday but you can bet that if the legal action looks like continuing, Patrick will try and force Toll to extend the offer to keep any Macquarie option alive.

Toll wants Patrick, Scanlon and Corrigan to 'comply with their obligations under a legally binding deed of Agreement with Toll

Toll also wants Mr Scanlon to honour his agreement to accept Toll's Offer.


Patrick says that in the absence of any higher offer, Scanlon and Corrigan will be accepting the Toll offer and the company continues to recommend to shareholders to accept the Toll offer, in the absence of another, higher offer.

Toll says that's not the case, the shares are committed, regardless, Patrick says 'rubbish' or words to that affect.

Toll claimed in a statement announcing its legal action that "Patrick's board was soliciting an alternative offer from Macquarie within 24 hours of signing the Deed of Agreement with Toll.

Patrick shares finished the day down eight cents at $8.90.

Toll gained 60 cents, or more than 4.5 per cent, to $13.70, and Macquarie Bank added 40 cents to $71.

Meanwhile Federal Cabinet met Monday and briefly discussed Telstra but did nothing else because there's no settlement of the regulatory dispute between the Telco and the ACCC.

Federal Cabinet has now delayed a decision on how to regulate Telstra.

A spokesman for the Finance Minister Nick Minchin says the Government is still waiting on the result of negotiations on regulatory issues between the ACCC and Telstra.

The spokesman has also confirmed that the Government will cut the value of its remaining stake in the company in tomorrow's Budget.

Telstra shares were relaxed, closing at $3.86, up slightly in the very strong market.

Disclosure: Glenn Dyer has Telstra shares...