TWR - Tower Insurance.

[macduffy]

Or, as you say, other offers might emerge and trump TWR.

Once you start talking to a potential target you can't avoid that possibility. I still reckon though it's a pretty poor strategy not to first secure major shareholdings when such a few holders determine the outcome.

[CJ]

One other thought about the major holder. It is the family Trust of the now deceased founder from what I understand. While the Trustees might not want to sell, my guess is some beneficiaries probably started salivating over the thought of getting some cash out of it. Those Trustees have probably had a few calls asking for it to proceed (maybe at a higher price but proceed none the less).

It is all about stirring it up and creating uncertainty. TWR has probably spent very little money so far on the offer, yet the impact many times greater.

[macduffy]

When is FY being announced? ... TWR should have been doing OK to Very Good in the last 6 months.

Today's the day?

Recent modest SP strength points to a satisfactory result?

[winner69]

http://file.nzx.com/000/627/4392627.pdf

Solid ... But not spectactular.

Seeing Muir has been given the shove from Pumpkin Patch I wonder if anybody sees Sam Stubbs tainting Tower Investments name ..... Sam might not have been chairman or director but many think he did a great job in helping Hotchin et all sucking those Allied guys in

[macduffy]

TWR says it may make a capital return if it can't find anything to buy.

http://www.stuff.co.nz/business/4609...-on-cash-hoard

[Jaa]

Good on Gaynor for giving them a hurry up.

[CJ]

If they sell their stake to one purchaser it will trigger a takeover (or 50% at least), since GPG holds above 20% (they hold 35% from what I can tell.)

[RRR]

Too confusing for me. GPG wants to sell 35% stake - who will buy it, surely they will have to sell it at a discount (??) being a 'forced sale'. And, TWR is considering capital return! Cant they buy back shares (at least some) from GPG at a discount using the pile of cash they have?

[macduffy]

Too confusing for me. GPG wants to sell 35% stake - who will buy it, surely they will have to sell it at a discount (??) being a 'forced sale'. And, TWR is considering capital return! Cant they buy back shares (at least some) from GPG at a discount using the pile of cash they have?

Buybacks have to treat all shareholders equally, ie either stand in the market or make a proportionate offer to all.

Now that GPG's TWR shares are for sale it gives a degree of certainty which may bring out interested buyers. The result may be some competition for the stake - and the inside running for a full takeover. At least, that's what the market is betting on at present.

[RRR]

Thanks Macduffy for the clarification.