Toll fancies Footwork

The deal, subject to regulatory approval, will give Toll, which owns 36 per cent of Footwork, the remaining stake for $95 million.

Footwork has debts of $120 million, and the price implies the business is worth $270 million.

Toll will have to write down the carrying value of its existing holding to a fair value based on the 64 per cent being acquired, resulting in a non-cash charge of up to $30 million in 2009-10.

Footwork employs more than 5000 people and has revenue of about $775 million.

Toll Holdings closed 2? higher at $8.59.