Editing Tranz Rail (section)

===Takeover===
In May 2002, Tranz Rail was delisted from the NASDAQ, as 70% of its shares were owned by New Zealanders and 16% Australians.<ref>{{cite book|title=Rails, New Zealand's Rail Transport Journal|date=June 2002|publisher=Southern Press Ltd}}</ref>

In May 2003, United States based [[RailAmerica]] made a takeover offer of 75c per share for Tranz Rail. The offer was later withdrawn when the share price dropped below 50c. In June 2003, the Government announced that it would buy back the rail network for $1 and purchase a 35% stake in the firm for $76 million (67c per share), which would have given it effective control of the company. The Government would have had the right to nominate three of the seven directors on the board. This met with approval from the [[Rail & Maritime Transport Union]] (RMTU) which had run a vigorous "Take Back The Track" campaign for the government to renationalise the railway network. The Rail Freight Action Group, which represents the interests of some of the biggest rail freight using companies, declared its support. Tranz Scenic, by then a separate company from Tranz Rail, did likewise.

====Toll Holdings offer====
{{Main|Toll NZ}}
In May 2003, the Australian transport firm [[Toll Group|Toll Holdings]] purchased a 6.1% share of Tranz Rail, increasing its share to 10.1% by June and 19.9% in July. Toll then launched its own takeover bid, initially offering 75c per share, later increased to 95c.

In July 2003, the Government announced that it was dropping its bid to buy a 35% stake in Tranz Rail, instead allowing Toll to succeed in its takeover bid. Toll's bid valued Tranz Rail at $231 million. The Government reached a Heads of Agreement with Toll later that month, and eventually bought the rail network for $1, plus $50 million for property assets including leases and [[Wellington railway station]]. The deal also established a performance regime creating incentives for Toll if it shifts freight from road to rail, and penalties if freight carriage falls below 70% of current levels. If Toll increases freight volumes by 10% or more on certain lines the Government will grant it a track access charge holiday. The parties agreed the Government would spend $200 million over the next five years upgrading the track via the New Zealand Railways Corporation, operating as ONTRACK.

Toll did not achieve the 90% stake of Tranz Rail it required to meet the Government's deal and compulsorily acquire the remaining 10% of shares, despite raising its offer again to $1.10 per share. In 2003, around 3,000 small shareholders held 25% of Tranz Rail's shares, many of them major institutional shareholders such as AMI and [[Infratil]]. After a number of extensions of the deadline set by Toll, it held 84.2% of shares in Tranz Rail after the offer closed in December 2003. By that time, shares were being sold on the New Zealand Sharemarket for $1.65, above even the independent valuation of between $1.34 and $1.62 made in July by merchant bankers Grant Samuel. Despite Toll not achieving the 90% requirement, the Government honoured the Heads of Agreement made in July.

In February 2004, Tranz Rail reported a $346 million loss for the half-year ended December 2003. In the same year, it carried 2.1 million tonnes of coal on the [[Midland Line, New Zealand|Midland line]] in the South Island. The departure of the former chief executive officer, Michael Beard, and six other top managers cost it $6 million in exit payments.

The company was renamed [[Toll NZ]] and did not retain any of the Tranz Rail directors. In May 2008, the New Zealand Government agreed to buy the rail and sea transport assets of Toll NZ Limited for $665 million.<ref>{{cite web|url=http://www.scoop.co.nz/stories/PA0805/S00053.htm|title=Rail buy back marks new sustainable transport era|date=5 May 2008|accessdate=2008-05-05|archive-date=5 May 2008|archive-url=https://web.archive.org/web/20080505191641/http://www.scoop.co.nz/stories/PA0805/S00053.htm|url-status=live}}</ref> The government branded the new company [[KiwiRail]].