Feud With Patrick Corporation
From late 2005 until May 2006, Toll was embroiled in controversy over its attempt to take over Patrick Corporation. In particular, board meetings for the combined Pacific National rail project were used as slanging matches by Patrick and Toll directors.
The process included several court cases brought by each side.
On 19 January 2006, the ACCC ruled that Toll cannot take Patrick over.
On 13 March 2006, the ACCC announced that it accepted Toll's proposed court-enforceable undertakings and would no longer object to the takeover. However the share markets appeared to require that a higher price would need to be offered.
On 14 April 2006, Toll announced that it would offer 0.4 Toll shares plus A$3.00 for each Patrick Corporation share. The Patrick board unanimously accepted the revised offer. All ongoing legal proceedings between the two companies were to be dropped and Patrick would no longer acquire FCL Interstate Transport. By purchasing Patrick, Toll will be the fourth largest transport company in the world and have annual revenues of over 8 billion
The takeover was finally successful in May 2006. Toll gained control of Patrick on 11 May 2006 and announced intent to compulsorily acquire the remaining shares in Patrick.
Read more about this topic: Toll Holdings
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