10.30am
Cash-strapped rail operator Tranz Rail is considering a takeover offer from RailAmerica for 75c per share.
Tranz Rail chairman Wayne Walden said in a statement today the company was considering the offer, and was seeking external valuation and advice.
The company's shares closed yesterday at 52c.
Mr Walden said the company would be
focused on the best interest of the company and shareholders.
RailAmerica, through its subsidiary Rail New Zealand, also offered $2.25 for every American Depositary Receipt, which represent three ordinary Tranz Rail shares, and cash for Tranz Rail's restricted shares.
The offer was conditional on receiving acceptances for at least 90 per cent of Tranz Rail shares.
Tranz Rail shares soared 25c, or more than 50 per cent, to 76c shortly after the offer was announced this morning.
In April, RailAmerica said it was monitoring Tranz Rail, but had no interest in pursuing an acquisition.
Tranz Rail's shares, which have plunged about 90 per cent in value in the last year, hit a low of 30c on April 16 amid profit and credit downgrades, debt concerns and the prospect of asset fire sales.
RailAmerica is the world's largest short-line operator, and runs an operation in Australia.
- NZPA
