Royal considering Tower takeover
The possibility of a forced marriage between Tyndall Australia and Tower Corporation is still on the cards.
Thursday, April 22nd 1999, 12:00AM
The possibility of a forced marriage between Tyndall Australia and Tower Corporation is still on the cards.Royal & SunAlliance has indicated that when it gains control of Tyndall it may pursue the merger option driven by Tyndall's major shareholder Guinness Peat Group.
Earlier in the week GPG shareholders approved a plan to sell the company's controlling stake in Tyndall Australia to Royal & SunAlliance.
The sale is expected to raise more than $A225.6mill for Sir Ron Brierley's GPG. Royal & SunAlliance would pick up a significant business in Australia, plus subsidiary New Zealand Guardian Trust.
Royal & SunAlliance global chief executive Bob Mendelsohn is reported as saying that the company hasn't yet made a decision on what to do with GPG's hostile bid, which it inherits in the Tyndall acquisition.
The decision will be made once the transaction is completed.
However, the group has been hyper-active in its acquisitions in the Australasia region.
In another twist in this case, GPG is expected to seek leave, next week, from the Court of Appeal to take an expired part of its bid to the Privy Council.
It wants to reopen earlier unsuccessful attempts to have the Tower bylaws governing the demutualisation process ruled as being outside the scope of its founding legislation.
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