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Toll gauges Tranz Rail buyout

<p>Toll Holdings will meet key Tranz Rail stakeholders in New Zealand this week to weigh up launching a takeover bid for the national operator.</p> <p>Toll’s managing director Paul Little said this morning (Monday, April 26) that the company would move "fairly quickly" to decide the issue.</p> <p>"Now we have a plan to have discussions with the (New Zealand) government and Tranz Rail, and of course Tranz Rail customers," Mr Little said.</p> <p>Once Toll knew where the Tranz Rail board, the government and key customers stood it would make a decision, he said.</p> <p>"I think the market needs to settle down a lot," he said.</p> <p>Last Friday (May 23), Toll increased its stake in Tranz Rail to 10.1%, the day after Rail America withdrew its intention to launch a takeover bid for the New Zealand company.</p> <p>Toll is at present engaged in a due diligence process for the sale of Tranz Rail’s trucking arm, Tranz Link.</p> <p>"It’s fair to say that our interest in Tranz Rail is broader than just Tranz Link and it always was," Mr Little said.</p> <p>Tranz Rail’s rail and ferry operations and its Tasmania rail assets were all of interest, Mr Little said.</p> <p>If Toll were to make a bid for Tranz Rail it would not need to go to the market to raise cash, he said.</p> <p>In the meantime, the company will continue its due diligence process for Tranz Link.</p> <br />