Reuters reported that Australia's biggest port & rail operator Asciano Limited has rejected an unsolicited private equity bid worth around AUD 2.9 billion, saying the offer undervalued its business.

Asciano runs a national rail operation and also a ports and stevedoring business Patrick, at Australia's four major ports. Australia is enjoying an export boom on robust demand for commodities such as coal, iron ore, oil and food. But Asciano has been having trouble meeting customer demand due to capacity constraints in coal producing regions and delays in improvements to infrastructure.

Asciano owns rail operator Pacific National, with 2007 revenues of AUD 1.5 billion, and Patrick, with 2007 revenue of AUD 900 million.