[Vic] Brambles weighs up rail bids

["James C." <james_ccj@optusnet.com.au>]

http://www.theage.com.au/business/2001/05/28/FFX1DZZO7NC.html

Brambles weighs up rail bids

By MARK TODD
SYDNEY
Monday 28 May 2001

Brambles Industries has received at least four formal bids for its Group
CAIB rail wagon rental business in Europe, heightening expectations the
company is near to selling the division.

All offers are believed to be in excess of Brambles' reserve price for CAIB,
valued by analysts in excess of $500 million.

The company had set itself the goal of only making a decision on whether to
sell CAIB by June 30 but could now complete the deal ahead of schedule.

"The real asset the market is keen to see gone is Group CAIB," said Salomon
Smith Barney's transport analyst Jason Smith.

"We expect Brambles has seen significant interest in CAIB over the last
couple of months and has a number of offers on the table that the directors
will find hard to resist when the board meets in June." CAIB is the largest
single part of Brambles' equipment rental division, which is up for sale.

The process is expected to raise more than $1.1 billion for reinvestment in
the company's growth businesses of CHEP pallet hire, Cleanaway waste
management, and Recall document management.

The CAIB sale talks come at the end of an intense international roadshow by
Brambles management over the past month to present the company's proposed
$20 billion industrial services merger with GKN plc.


Shares in Brambles ended Friday at $51.55, down marginally on the recent
peak of $52.71.


The company had set itself the goal of only making a decision on whether to
sell CAIB by June 30 but could now complete the deal ahead of schedule.

"The real asset the market is keen to see gone is Group CAIB," said Salomon
Smith Barney's transport analyst Jason Smith.

"We expect Brambles has seen significant interest in CAIB over the last
couple of months and has a number of offers on the table that the directors
will find hard to resist when the board meets in June." CAIB is the largest
single part of Brambles' equipment rental division, which is up for sale.

The process is expected to raise more than $1.1 billion for reinvestment in
the company's growth businesses of CHEP pallet hire, Cleanaway waste
management, and Recall document management.

The CAIB sale talks come at the end of an intense international roadshow by
Brambles management over the past month to present the company's proposed
$20 billion industrial services merger with GKN plc.


Shares in Brambles ended Friday at $51.55, down marginally on the recent
peak of $52.71.