Forum Archive Index - August 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

The article below is  from the SMH. dated 29 August, 2001.

 

Gerry

 

" With the National Rail/Freight Corp privatisation sale back on the tracks, shares in Lang Corp and Toll Holdings have been steaming along.

It isn't surprising, given most analysts now view the rail assets as crucial to the long-term growth plans of both companies. Some suggest a winning bid, as part of a consortium, could add at least $3 per share to Lang Corp valuations and more than $6.50 to Toll.

The race is on for partners in the bidding. Lang Corp is considered a front-runner, as it is one of the few candidates capable of buying all of National Rail/Freight Corp on its own. Whether it would want to do that is another thing, and an alliance with Toll has been mooted.

Possible partners for Toll could include infrastructure investors such as Hastings Funds Management or Omnitrax from the US.

Deutsche Bank suggests Wesfarmers could be a dark horse in the bidding, via its Australian Rail Group joint venture with Genesee & Wyoming Inc.

Analysts believe the likely price tag for the assets is now around $1 billion, down from initial estimates of $1.5 billion. However, the vendors - the Federal, NSW and Victorian governments - may get even less given the conditions put on the sale, such as job protection guarantees demanded by unions.

Lang Corp shares are up 5.5 per cent to $11.45 since the governments announced they'd try to sell the assets this year ".

End