tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 27th, 7:03PM

Insurance

rss
Latest Headlines

Fidelity counter-bid offers a few dollars more

A minor bidding war has broken out for Fidelity shareholders with a new higher proposal on the table just days after Farmers’ Mutual Group’s (FMG) indicative offer of $72 per share.

Thursday, May 10th 2007, 10:11PM

by David Chaplin

Karl Trotter, whose family trust owns over 20,000 Fidelity shares, has sent a letter to the insurance company’s shareholders offering $75 per share.

Trotter said FMG was issued Fidelity shares valued at $72 per share in February as part payment for its life insurance arm but that price “did not reflect the true value of the company”.

“On the face of it $72 might seem high but it undervalues Fidelity... I just want to put shareholders in the position of having a fairer offer,” he said.

Trotter said while it was difficult to accurately value Fidelity before the latest full-year results were known he was “comfortable” paying $75 per share.

Gordon Smith, FMG chief, told Good Returns this week the company, which already owns 8% of Fidelity, is looking to lift its stake to 10%.

Smith said the $72 per share was an indicative offer and FMG would negotiate on a case-by-case basis.

He said interest to date in the offer from Fidelity shareholders has been minimal.

In his letter to shareholders Trotter said: “As my family trust’s resources are not limitless, it might be that this invitation will need to be withdrawn without further notice.

“However, until that point is reached, I will deal on a first come, first served basis.”

He also expected only a few Fidelity shareholders would be interested in selling.

“I’ve had a couple of encouraging phone calls but no-one’s wanted to sell... they said ‘thanks but no thanks’,” Trotter said.

« Sovereign encourages dual coverPinnacle launches online underwriting »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Fidelity Life’s transformation continues with top culture award
Fidelity Life's tech team pick up a gong at IT awards.

Fidelity Life dials up new tech
Fidelity Life says its new telephony solution deliver immediate benefits to customers and advisers.

AIA pimps up its Quick Quote calculator
AIA has enhanced its Quick Quote tool, which it says provides an opportunity to attract new, more qualified customers.

Southern Cross to bring mental health programme to kiwi kids
The programme aimed at helping kiwi kids navigate life’s ups and downs will soon be available free of charge to any primary or intermediate school in New Zealand.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com
x