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Discussion Starter · #1 · (Edited)
$6bil Mega deal: Toll takes Patricks

Some more gloating (I dedicate this posting to you zach ;-) ):


Mega deal: Toll takes Patricks
Geoff Easdown

15apr06

MELBOURNE will become the transport hub of Australia following a $6 billion coup.

Victorian-based Toll Holdings shapes as one of the world's biggest freight businesses after clinching a Good Friday takeover of rival Patrick Corporation.

Almost every consumer item – from food and clothing to cars and electrical appliances – will pass through Toll-owned docks on Toll trucks to Toll warehouses.

They will be shipped interstate on a rail freight network half-owned by Toll.

Air freight will be carried by Virgin Blue, which as a result of the takeover will be 62 per cent owned by Toll.

Toll, which is controlled by millionaire Melbourne businessman Paul Little, plans to create a seamless haulage and logistics business.

It will control the flow of freight from Asia to the retail aisles of Australian department stores and supermarkets.

The deal ends Patrick chief Chris Corrigan's reign over the Australian waterfront. His immediate plan was to take a cycling holiday in Italy next month.

Mr Corrigan said Patrick had won a good price for its assets. He stands to walk away from the sale with about $150 million.

Mr Little pulled off the deal by tipping an extra 80c a share, or about $560 million, into his eight-month-old takeover offer.

Clinching the deal has cost Toll $1.5 billion more than what Mr Little, who holds 11 per cent of the business, was prepared to pay when he launched the takeover.

Patrick chairman Peter Scanlon, who operates his business interests from an office in Collins St, will walk away from the sale with about $380 million.

Mr Corrigan, who has yet to decide whether to sell his shares or exchange them for Toll scrip, would net about $148 million if he sold.

The deal ends one of the toughest takeover fights in Australian corporate history.

Mr Corrigan's forces stalled Toll for eight months with court actions and a savage media campaign.

It was a much relieved Paul Little who spoke yesterday, admitting the takeover had cost Toll upwards of $20 million to fight. He said Patrick's Sydney head office would close and day-to-day operations would shift to Toll's headquarters in Melbourne's St Kilda Rd.

Asked whether Melbourne's already dominant role as the nation's business port would change or get bigger,Mr Little said Toll would bring its land-based expertise to Patrick's stevedoring business.

"Hopefully we can work together to enhance the overall efficiency of it," Mr Little said.

But he said that while freight volumes might at some stage be shifted from one state to another, there were no immediate plans for change.

Pressed on how Toll intended to streamline the carriage of freight, he said: "At the moment the movement of goods out of China into Australia is terribly inefficient for a whole bunch of reasons."

Toll planned to make the transport arrangements more efficient, he said. "Everyone will walk away a winner," Mr Little said.

But in announcing the takeover, he left the future ownership of Virgin Blue undecided.

Under the terms of his original offer, 15 per cent of Virgin Blue was to be sold back to British billionaire Sir Richard Branson, giving him a controlling stake.

But Mr Little yesterday said the ownership of Virgin Blue was yet to be decided and Toll wanted more time to understand a business that would be used to carry its air freight.

He said Virgin Blue's fortunes had changed markedly since an agreement was made last year to sell a stake to Sir Richard.

He also noted that Toll would have to pay Branson $12 million if the sale of the Virgin Blue stake did not go ahead.

Sir Richard, who has a 25 per cent stake in Virgin Blue and who has long been at odds with Mr Corrigan, said yesterday that he was pleased about the Toll takeover.

He said his own Virgin group of companies had been vocal about regaining control from Patrick of the Australian-based carrier it founded.

"The only way for us to achieve this was to find someone who had enough courage to take control of Patrick Corp.

"Fortunately Paul Little had similar aspirations and has successfully achieved this great outcome."

Mr Corrigan said Patrick had extracted a good price for its assets and his departure from the business would see an era pass on the Australian waterfront.

Patrick chairman Peter Scanlon, who operates his business interests from an office in Collins St, will walk away from the sale with about $380 million.

Mr Corrigan, who has yet to decide whether to sell his shares or exchange them for Toll scrip, would net about $148 million if he sold.

The deal ends one of the toughest takeover fights in Australian corporate history.

Mr Corrigan's forces stalled Toll for eight months with court actions and a savage media campaign.

It was a much relieved Paul Little who spoke yesterday, admitting the takeover had cost Toll upwards of $20 million to fight. He said Patrick's Sydney head office would close and day-to-day operations would shift to Toll's headquarters in Melbourne's St Kilda Rd.

Asked whether Melbourne's already dominant role as the nation's business port would change or get bigger,Mr Little said Toll would bring its land-based expertise to Patrick's stevedoring business.

"Hopefully we can work together to enhance the overall efficiency of it," Mr Little said.

But he said that while freight volumes might at some stage be shifted from one state to another, there were no immediate plans for change.

Pressed on how Toll intended to streamline the carriage of freight, he said: "At the moment the movement of goods out of China into Australia is terribly inefficient for a whole bunch of reasons."

Toll planned to make the transport arrangements more efficient, he said. "Everyone will walk away a winner," Mr Little said.

But in announcing the takeover, he left the future ownership of Virgin Blue undecided.

Under the terms of his original offer, 15 per cent of Virgin Blue was to be sold back to British billionaire Sir Richard Branson, giving him a controlling stake.

But Mr Little yesterday said the ownership of Virgin Blue was yet to be decided and Toll wanted more time to understand a business that would be used to carry its air freight.

He said Virgin Blue's fortunes had changed markedly since an agreement was made last year to sell a stake to Sir Richard.

He also noted that Toll would have to pay Branson $12 million if the sale of the Virgin Blue stake did not go ahead.

Sir Richard, who has a 25 per cent stake in Virgin Blue and who has long been at odds with Mr Corrigan, said yesterday that he was pleased about the Toll takeover.

He said his own Virgin group of companies had been vocal about regaining control from Patrick of the Australian-based carrier it founded.

"The only way for us to achieve this was to find someone who had enough courage to take control of Patrick Corp.

"Fortunately Paul Little had similar aspirations and has successfully achieved this great outcome."

Mr Corrigan said Patrick had extracted a good price for its assets and his departure from the business would see an era pass on the Australian waterfront.

http://www.heraldsun.news.com.au/common/story_page/0,5478,18816561%5E661,00.html
 

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Discussion Starter · #2 ·
Sydney to lose another business to Melbourne. I only wish when they move here, they would build in Docklands :)
 

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Arent sydney's ports being relocated to Botany Bay anyway? i think its a great move getting ports out of sydney harbour.
good for melbourne.its port looks more industrial. Sydneys is too pretty.lol
 

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lol - how sad lighting bolt
ive supported this bid for the last 8 months
it makes sense! do you really think i would be upset that patrick is going to be part of toll? fool

how stupid of you to actually think i care - i actually purchased patrick after the first attempt - and was very hopefully that a deal would proceed with a higher offer!

has nsw ever been home to large industrial companies? no! will it ever? no! melbourne can keep its industrial companies and sydney can focus on investment banking and financial services
 

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It is a great idea to have a new Toll HQ at Docklands. But most shipping in Melbourne is registered under the Panama or Liberian flag, and under foreign control. Toll will be an awesome rail network import/export via Darwin and regular Chinese owned ships from the whole of Australia.
 

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zach24 said:
well I hate this constant Melbourne inferior complex and Melbourne best in this and best in that – when clearly its no better than any other city in this country (i.e. the recent post about biotech)
get over it
You only want to see anti-melbourne crap. Its all you ever post. Melbourne sucks because this, Melbourne sucks because of that. And now, apparently its all Melburnians who have the inferiority complex. Look in the mirror retard.
 

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uewepuep said:
You only want to see anti-melbourne crap. Its all you ever post. Melbourne sucks because this, Melbourne sucks because of that. And now, apparently its all Melburnians who have the inferiority complex. Look in the mirror retard.
I agree. Zach24 is as Sydney-centric as they come.
 

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Agree. Perth is now a transport hub. Yay.
 

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Discussion Starter · #17 ·
Howie said:
I'm not exactly sure how Melbourne will be come a "Transport Hub" of australia, when they're in the bottom end of the country and most of aussie's major shipping ports are moving away from Melbourne. Hub's probably the wrong word in this case.
What are you talking about? Who's moving away? The whole purpose of deeping the shipping channel in Port Phillip bay is to ensure we stay the shipping hub, if it doesnt go ahead (thanks a lot greenie dickheads) then yes, there would no doubt be some losses.

It's the exact fact that shipping is coming to Melbourne when its fiurther away than other shipping ports- its that fact that shows Melbourne IS the transport hub.
 

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Discussion Starter · #18 ·
zach24 said:
lol - how sad lighting bolt
ive supported this bid for the last 8 months
it makes sense! do you really think i would be upset that patrick is going to be part of toll? fool

how stupid of you to actually think i care - i actually purchased patrick after the first attempt - and was very hopefully that a deal would proceed with a higher offer!

has nsw ever been home to large industrial companies? no! will it ever? no! melbourne can keep its industrial companies and sydney can focus on investment banking and financial services
Exactly the answer I expected, typical Sydney-centric, Melbourne-Hating zach.

Theres no need to be so insecure, you still have your beautiful harbour, and Opera house, just because we now have a $6billion dollar industry, it doesnt mean your going to lose them.
 

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Well of course you expected it if you bated him.

For ****'s sake we all know zach's a cockhead who likes to troll in just as about anything to do with Melbourne, but why fucking bate him and all the rest of them in the first place?

THINK.
 

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Lightning~Bolt said:
Exactly the answer I expected, typical Sydney-centric, Melbourne-Hating zach.

Theres no need to be so insecure, you still have your beautiful harbour, and Opera house, just because we now have a $6billion dollar industry, it doesnt mean your going to lose them.
Yep and now Telstra pretty much calls sydney home ($60 billion dollar company) with most of its directors and board meetings occurring in the harbour city (you bated me so you asked for it)

AND I’M NOT SYDNEY CENTRIC - I AM A QUEENSLANDER!!!!!!

And I will repeat myself (like I have said many times) I love Melbourne – I just don’t like the attitude of Melbourne forumers telling everyone else that they are the best in this and that

Do we ever have arguments against Adelaide vs Perth? Adelaide/Perth vs Brisbane? Brisbane vs Sydney? Sydney vs Adelaide or Perth???? NO!! its only Melbourne vs someone else!!!! - its as bad as toronto members
 
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