Tower looks for growth

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.

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Fonterra appoints permanent COO
Manawa Energy FY24 Annual Results & Webcast Details
Seeka Provides the Results of Meeting - ASM
April 19th Morning Report
PGW Guidance Update
CNU - Commerce Commission releases draft expenditure decision
Spark announces departure of Product Director
TGG - T&G appoints new Director
April 18th Morning Report
SKC - APPOINTMENT OF CHIEF EXECUTIVE OFFICER