<p>Toll Holdings has warned Tranz Rail shareholders that shareholding value will be diluted if they accept a New Zealand Government offer to buy back the national tracks.</p> <p>In Toll’s full NZ95 cent takeover offer released to shareholders this morning (Tuesday, June 24) managing director Paul Little said the government’s offer would include the issue of new shares equating to 35% of the company at NZ67 cents a share.</p> <p>"We believe that Toll’s offer is superior to the government’s proposal," Mr Little stated.</p> <p>"Toll’s offer provides certainty to shareholders at a time during which Tranz Rail’s share price has been extremely volatile and unpredictable."</p> <p>Toll’s bid also ascribed a higher value to Tranz Rail’s shares than the government’s proposal, he added.</p> <p>The offer is conditional on receiving 50% of shareholder take-up and on Tranz Rail not altering its capital of selling any more assets.</p> <p>The offer closes on July 23.</p> <br />
