Tower looks for growth

Friday 9th June 2000

Tower Group, the target of takeover speculation, said it would seek acquisitions or strategic alliances to build the business.

Tower's share price has risen strongly in recent weeks amid talk one of the major Australian banks may be interested in bidding. This week the price broke through the 565c level at which the shares were issued in September, cheering shareholders who have seen the stock languish since listing.

Interest was revived by Commonwealth Bank of Australia's takeover of Colonial Ltd. The move highlighted the attractions of funds management and insurance firms for banks looking for businesses with higher margins than their own, fiercely competitive traditional areas.

Tower has a 10% shareholding cap and a bidder would have to gain the consent of 75% of the group's shareholders to have it removed.

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