Toll could look at its offer again after Virgin Blue payout

<p>Toll Holdings says Virgin Blue’s controversial payout of a $262m dividend to shareholders is in breach of the conditions for its takeover bid for Patrick Corp, with Toll now "reserving its rights". </p> <p>The move could see Toll reducing its offer as a result of the cash taken out of the company.</p> <p>The dividend was 2.5 times the size of Virgin Blue’s annual profit of $105m, down 33% because of the impact of high fuel prices. </p> <p>However, Patrick managing director Chris Corrigan said at the announcement of Patrick’s full year profits yesterday (Thursday, November 17) that the move had not stripped Virgin Blue of cash. </p> <p>"Virgin Blue has $700m in cash in the coffers. It has never paid a dividend because it was earlier in a growth phase," Mr Corrigan said. </p> <p>"As growth has moderated, it has big piles of cash sitting around and we have paid out some of the retained earnings of the last four or five years."</p> <p>Mr Corrigan also said the payout of the dividend straight to shareholders, scotched Toll’s claims that the dividend was organised to help cover a $700m shortage of cash in Patrick to cover dividends and future investment. </p> <p>"How wrong can Toll be?" he said. </p> <p>Mr Corrigan said Patrick was not overgeared, had unused bank facilities of $500m, and its investment program was fully funded. </p> <br />