by David Chaplin
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Trotter said: “As my family trust’s resources are not limitless, it might be that this invitation will need to be withdrawn without further notice.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 cover | Pinnacle launches online underwriting » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved