Patrick, Toll clash on value of merged business

<p>Toll Holdings shares were down in trade this morning (Friday, March 24) to $13.95, as Patrick Corp questioned the value of Toll shares and the prospects of a merged Toll and Patrick business.</p> <p>The Patrick board said that Toll’s offer was "a confection of selective disclosure", and indicated that it would target the impact of Toll’s promises to the Australian Competition and Consumer Commission. </p> <p>The board said that there were "glaring uncertainties" over the sales prospects for core businesses that Toll has promised to sell, the "deliverability of Toll’s undertakings in all possible circumstances", and the impact which Toll’s undertakings may have on Toll’s competitive position in the logistics market.</p> <p>Patrick also said that Toll had offered no detail on the synergies it expected to generate, or the impact of the deal on Toll’s gearing. </p> <p>A Toll spokesman said: "The overwhelming majority of Patrick shareholders well understand the issues in the transaction and are looking for a resolution without further delay."</p> <p>Toll’s scrip-based offer equates to $7.55 per share for Patrick based on Toll’s close last Friday of $14.05. </p> <p>While the Toll spokesman said that yesterday’s performance by Toll shares on the market was "a strong endorsement", Toll was trading this morning 30 cents down from last night’s close of $14.25, which had put a price on the Patrick shares of $7.95 to $8.20 and within Patrick’s expert valuation range. </p> <p>The market is still targeting well in excess of $8 for Patrick, and analysts are expecting Toll to add more cash to its offer.</p> <p>Patrick shares were trading this morning at $8.12, down two cents from yesterday’s record close.</p> <p>Stockbroker CommSec said that if Patrick was able to execute its option to buy FCL Interstate Transport Services and also pursue a merger with Linfox, it would revise Patrick’s shares up to $8.54. </p> <p>Patrick was reported to be looking at a fresh independent valuation of its shares, and also seeking a ruling from the Takeovers Panel that might delay Toll’s offer until it overlaps with court hearings in Victoria on the break up of the Pacific National joint venture.</p> <br />