Tower Corporation directors have rejected the latest bid by Sir Ron Brierley's Guinness Peat Group to merge its subsidiary Tyndall Australia with Tower.
Tower Corporation directors have rejected the latest bid by Sir Ron Brierley's Guinness Peat Group to merge its subsidiary Tyndall Australia with Tower.
Tower managing director James Boonzaier says that the board has considered the GPG proposal in detail and has taken advice on the matter from investment bankers and actuaries.
He says that GPG's proposal significantly undervalues Tower, inflates the value of any possible merger, and is clearly designed to benefit Tyndall shareholders.
Tower will present its demutualisation proposal to the High Court in Wellington today (Monday) for approval. The hearing is set down for three days.
Under the Tower proposal its 400,000 policyholders in New Zealand and Australia will gain Tower shares when the company lists next year.
GPG upped the ante another notch last week when it released its 500-page proposal for the merger.
Policyholders, under the GPG proposal, would receive shares in Australian insurance subsidiary Tyndall (which also owns New Zealand Guardian Trust).
A full copy of this proposal can be found at www.nzgt.co.nz
Tower Corporation directors have rejected the latest bid by Sir Ron Brierley's Guinness Peat Group to merge its subsidiary Tyndall Australia with Tower. 