Weekly briefs

GAM sold, Tower's $22 million windfall

Monday, September 20th 1999, 12:00AM

Giant Swiss firm UBS has struck a deal to buy Global Asset Management (GAM) for between US$575 mill and US$675 million.

While GAM is a specialist, and highly regarded international fund manager, several of its funds are available in New Zealand through Tower Managed Funds.

Tower business development manager Kevin McLean says the change of ownership isn't likely to impact on New Zealand investors in the immediate future.

UBS says GAM will operate as a separate entity under its own name and key personal, including founder Gilbert de Botton, will be retained.

UBS says GAM will be able to leverage off UBS's distribution capabilities to strengthen its existing business lines.

GAM Institutional's London-based managing director and chief investment officer, Alan McFarlane will be doing a series of presentations in New Zealand later this month.

Tower's $22 million windfall

Tower Corporation will pick up what it calls a $22 million windfall from winning a long running legal dispute with the Inland Revenue Department.

The 12-year battle ends within days of Tower listing on New Zealand and Australian stock exchanges.

The dispute, which involved subsidiary Tower Financial Services Group, started in 1987 when its fire and general business Tower Insurance was assessed for income tax of $33 mill over the sale of its 30 per cent interest in financial services group Southpac.

The case has been heard in the High Court and a full Court of Appeal, where the five appeal judges found in favour of Tower in an action brought by Inland Revenue.

Tower group's managing director, James Boonzaier, describes the $22 million win as an extraordinary windfall.

The company is scheduled to debut on the sharemarket on September 28. The final issue price and the allocations would be announced on the day before listing.

« Finalists announced

Get your tax questions answered online »

Special Offers