https://www.nzx.com/companies/TWR/announcements/296540
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Takeover at $1.17 per share.
I think shareholders can count themselves as extremely lucky someone else wants try and de-flea this pup. The other thing is those people with Tower policies might now have an owner capable of properly capitalizing the business and perhaps even better still a company that might treat their policy holders claims in an ethical and more reasonable manner.
I'm not so sure about that Roger. Tower has quite a bit of strategic value. Suncorp might yet offer more than $1.17 now that someone has put their balls on the table. Fairfax is basically a value fund and Prem Watsa (Fairfax CEO) has an amazing track record so they no doubt see plenty of value at $1.17. I still think Tower is worth c. $1.50+ as a clean company (acknowledging they are far from clean right now).
For Suncorp taking out Tower makes sense as they get another 5% market share and Youi aside make the NZ insurance market an effective duopoly alongside IAG. I wouldn't discount a competing bid of maybe $1.30 a share but depends if Suncorp has the appetite - don't think the CC would allow IAG to bid but the NZCC are weak so you never know...
I agree another bidder emerging is a real possibility thinking of buying some more
Well, a bolt out of the blue. I did not see that coming.
Varying degrees of probable profit for post 8-Sep buyers.
Best Wishes
Paper Tiger
I suppose anything is possible but the true depth of the black hole that is the remaining claims in respect of the Canterbury earthquakes and now the Kaikoura ones is anyone's guess.
I would imagine Suncorp's appetite for expansion would be somewhat blunted by their recent financial performance and experience with the shaky isles http://www.scoop.co.nz/stories/BU170...+February+2017 and IAG already have a hugely dominant market position so while I agree the commerce commission are very weak, surely they're not totally pathetic ?...but then again they allowed Z to buy Caltex's interests which I think was a real shocker of a decision so you never know do you !
I think this is a sell, take the money and run just in case one of the approvals required under this takeover isn't forthcoming. I guess some will hold for a while in the hope of a competing takeover offer so perhaps waiting for a few weeks to see if one emerges isn't without its merits.