Higher price for Countrywide British banking group Lloyds TSB Group has paid Bank of Scotland $850 million for its New Zealand subsidiary Countrywide Bank.
The purchase price is considerably higher than the $650 to $700 million price that was expected when the deal was announced in July.
Lloyds is to merger Countrywide with its New Zealand subsidiary National Bank, and it has announced that it will inject $110 million of new capital into Countrywide.
Analysts are predicting Lloyds will use its New Zealand business as a springboard into the Australian market.
Wake up. Get out of bed The Investment Savings and Insurance Association has renewed its call for the Government to take the lead in developing a nationally accepted policy on retirement income policies.
The ISI, earlier this year, released its Wake Up call report on superannuation, however the Government is still in bed.
Chairman Ross McEwan says the report urged the Government to initiate debate and policy development on this issue.
"However, despite pointing out particular areas of development that were needed and receiving a good hearing, nothing seems to have happened since.
"As each year goes by, there is less time available to develop and implement new savings policies to benefit the substantially greater proportion of people who will be leaving the workforce," he says.
"For the sake of individual New Zealanders and the country as a whole, our political representatives must grasp this issue and develop an acceptable savings regime," McEwan says.
Alternative trees Sharebrokers DF Mainland are promoting an alternative forestry investment which is predicted to produce a tax-paid return of 10.65 per cent.
The company, Fibre ShareFarms Ltd, is to plant a hardwood forest (species unknown), as opposed to a softwood Pinusradiata forest, which would reach maturity in seven years time (compared to 25-30 years for radiata).
A major Japanese trading house, Marubeni Corporation, has guaranteed to purchase the entire harvest, and guaranteed a minimum price.
The minimum investment is one share at $53, 406, and only 40 shares are available.
Metropolis offer Money Managers are about to launch a $21 million bond offer with the release of the Metropolis Subordinated Property Bonds. The bonds will pay investors 14 per cent annually, over an estimated term of 19.5 months.
Marketing manager Alasdair Scott says the offer presents a real challenge: "We've had to get quite creative with Metropolis. Without going into too much detail, let's say the marketing mix "for Metropolis is awash with activity.
The bonds are being used to refinance existing mezzanine debt of the Metropolis development in Auckland's High Street.
On completion the 38-level development will consist of 345 apartments and 23 penthouses with 17 retail/commercial premises and 210 carparks.
The bond issue is to close in late November.
Higher price for Countrywide