Toll to take ACCC rejection to the Federal Court

<p>Toll Holdings is to call off negotiations with the Australian Competition and Consumer Commission, effectively inviting the commission to challenge its continuing bid for Patrick Corp in Federal Court. </p> <p>Toll chief executive Paul Little said this afternoon (Wednesday, January 25): "It has become clear that ACCC approval would not be forthcoming unless Toll provides unacceptable and uncommercial undertakings which would be value-destructive to Toll shareholders. </p> <p>"We expect the ACCC to commence proceedings against Toll and we will vigorously defend our right to pursue the proposed takeover of Patrick Corporation."</p> <p>Toll had appeared very confident that the commission would nod through its merger plan, right up until the ACCC comprehensive rejected the plan on January 18.</p> <p>Analysts say that the court process could take up to a year to complete, with the Toll’s share price and its scrip-based bid hostage to fortune in the meantime. </p> <p>However, they say that burden of proving the bid will breach Section 50 of the Trade Practices Act will shift onto the ACCC if the issue goes to court.</p> <p>They also say that the Federal Court could take a narrower view of industry regulation than the ACCC did in its findings. </p> <p>Mr Little said that a dedicate team will now manage the Patrick bid, while the company focuses on logistics growth, including opportunities in the Asian region. </p> <p>Patrick chief executive Chris Corrigan said: "Toll continue to delude themselves and their shareholders but I guess they felt they had to do something to give the impression they still have a plan.</p> <p>"In the meantime, we wish them well with their `Asian strategy’." </p> <p>&#8226 An earlier report can be found on today’s News Wire.</p> <br />