Cullen paid $570 million over valuation

Duncan Bridgeman at NBR has written on the purchase of Dr Cullen's train set:

Documents posted on the Treasury website reveal that in late 2006 officials valued the New Zealand's rail system at $120 million, some $570 million less than the price the government paid for the in July this year.

Yes we paid around six times the estimated value of the trains. My .

The papers reveal that in December 2007, government agency ONTRACK made an indicative offer for equity held by NZ of up to $350 million.

So Toll pushed Dr Cullen up from $350 million to $690 million. No wonder they call it the sale of the century.

Comments (50)

Login to comment or vote

Add a Comment