Toll chief Little slams Corrigan’s ‘bizarre’ tactics

<p>Toll Holdings chief executive Paul Little yesterday (Thursday, October 27) described takeover target Patrick Corp’s tactics in attempting to foil the Toll bid as "quite bizarre", claiming he was confident that ultimately the bid would succeed.</p> <p>Mr Little told shareholders at the company’s annual general meeting in Melbourne that Patrick chief executive Chris Corrigan had tried to manufacture the appearance of a major dispute over the provisions of a contract between Pacific National and Toll.</p> <p>This was despite the fact that Mr Corrigan had signed the contract, "of his own free will and volition" in August 2003.</p> <p>"It wasn’t until more than two years later that he made any mention to his shareholders that he had a problem with it: a problem he says is now so fundamental that it merits potentially breaking up the whole Pacific National business," Mr Little said.</p> <p>"So, Mr Corrigan is asking his shareholders to believe that, as one of Australia’s most astute businessmen, he and his executives don’t actually read material contracts before they sign them. </p> <p>"And that a dispute can be so material that it merits attempting to break up Pacific National and damage one of Patrick’s best businesses, but not material enough for Mr Corrigan to bother sharing his concerns with shareholders until &#8211 amazingly &#8211 just after Toll had bid for Patrick."</p> <p>Mr Little said for the record, Pacific National continued to operate exceedingly well, </p> <p>He criticised Patrick’s target-statement. claiming that it "adopts a very superior tone about the quality of Patrick’s businesses compared to Toll".</p> <p>Mr Little said the statement fails to mention that Toll has made about three times as much money for its shareholders as Patrick over the past five years. </p> <p>The statement lacked any vision or sense of strategic direction for the Patrick business, he said.</p> <p>"I believe that Mr Corrigan’s tactics will ultimately help our bid succeed," he said. </p> <p>With Australian Competition and Consumer Competition approval for the bid, Toll would present Patrick shareholders with a very clear and simple choice, Mr Little said.</p> <p>He said he urged Patrick shareholders to accept Toll’s offer, and participate in value creation or reject it, "and face the music of a falling Patrick share price and a very uncertain future, which includes a significant exposure to the volatile airline industry".</p> <p>Mr Little said Toll saw no merit in Patrick’s self-serving valuation of itself and believed the offer represents exceptional value for Patrick shareholders.</p> <br />