TWR - Tower Insurance.

[macduffy]

I can only assume that the bust-up with the bank (ANZ?) is weighing on the sp and the market is waiting to see what the bottom line effect will be. (My own analysis suggests 1/10 of b.gger all and I'm not that concerned.)

Just a thought but perhaps there's a view that GPG might influence a sale, at less than full value, as part of the expected rationalisation of GPG's assets. Their 35% of TWR would be one of their more readily saleable holdings, particularly if they can deliver the whole TWR operation to a buyer.

[macduffy]

Yeah I thought about that too but in the context of GPG unloading I'd expect the market would be paying a premium price for control so it'd be far higher than current sp - say $2.80 or more.

But who would be in the market for a TWR/Fidelity?

I would think that Sovereign, AMP,AXA would be interested but may have trouble on the competition front. Kiwibank should be interested but would have to somehow convince the govt to put up even more capital than what they already need to finance their growing banking business.

There may not be many contenders!

[Anna Naum]

Fidelity says major shareholders to reject Tower offer
BusinessDesk | 1:01pm
Fidelity Life Assurance says its biggest shareholders, with 70 percent of the company, plan to reject rival Tower ’s unsolicited $118 million cash and scrip takeover offer.

[CJ]

Fidelity says major shareholders to reject Tower offer
BusinessDesk | 1:01pm
Fidelity Life Assurance says its biggest shareholders, with 70 percent of the company, plan to reject rival Tower ’s unsolicited $118 million cash and scrip takeover offer.

With the major shareholder holding over 50%, you have to wonder why TWR bothered. I would have thought lots of back room talk should have taken place first.

[macduffy]

Yes, it sounds a pretty inept way to go about things. Perhaps they took advice from GPG!

No hope of success if TWR can't come to terms with these major holders.

[Lego_Man]

Yes, it sounds a pretty inept way to go about things. Perhaps they took advice from GPG!

No hope of success if TWR can't come to terms with these major holders.

Idiotic is the word i would use to describe it.

[JayPe]

Latest News:
http://www.nzherald.co.nz/business/n...ectid=10678424

Summary:
They made a takeover offer conditional on 90% acceptance but didn't talk to the three major shareholders who own 53%, 17% & 11% respectively. Furthermore, the 17% shareholder says that he was surprised as the only contact was a phone call about it three months ago.

Seriously, is there some hidden strategic reason for publicly announcing this offer like this? It just seems inept.

[ENP]

If these people are running the company, who cannot even make a few phone calls and now have made themselves look like clowns...

Why would you invest your hard earned savings there?

[CJ]

Maybe they realized they weren't going to get anywhere with the shareholders behind the scenes, so they threw an offer out there, hoping they would show their cards.

By bringing it out in the open, the Directors have a fiduciary duty to look into it (ie. get a valuation and give a recommendation), even though the main shareholders are opposed to it. I think that is why the Directors made a comment to the effect it was inconvenient and unwelcome.

[Felix]

Yeah I agree CJ. It is going to shed light on the privately held company, it might drag out some other interest in industry consolidation and it is probably only the opening bid. Of course the main shareholders of Fidelity are going to say "thanks, but no thanks" to the first offer. Who would take the first offer that is made? Tower will put a compelling case to them, raise the offer and then we'll see what the main shareholders say.