Patrick continues to rise on second bidder rumours

<p>Patrick Corp’s shares continued to climb this morning (Thursday, May 4) on speculation that a mystery consortium may challenge Toll Holdings’s bid for the company ahead of its close a week tomorrow, Friday, May 12. </p> <p>Patrick was this morning trading at $8.75, having now risen to an 18 cent premium over the current value of Toll’s scrip and cash bid. Market analysts said hedge funds may be buying into Patrick in the belief that a second bid was now a possibility. </p> <p>Toll Holdings yesterday looked set to close the deal on schedule on May 12, forcing any rival to put up or shut up.</p> <p>Toll needs 50.1% by the end of next week to take control and see the Patrick board resign. So far, it has 19.45%, plus commitments from Patrick chair Peter Scanlon of another 6% to 7%.</p> <p>A rival offer would have to be well above Patrick’s share price and in cash, with Toll already paying a strong multiple for the port-based business. </p> <p>Around the world, there continue to be expansive offers for ports, with PSA paying US$4.4bn for 20% of Hutchison, and a group led by Goldman Sachs aggressively bidding for Associated British Ports. </p> <br />