Sharechat Logo

GPG's underwriting court case cancelled

Wednesday 6th August 2003

Text too small?
GPG's court case over the underwriting of the Tower rights issue, and the associated meeting with the Takeovers Panel have cancelled.

The Takeovers Panel meeting was to determine whether GPG, as lead underwriter, could rely on clause 19 of the Takeovers Code which requires underwriters to sell down any shareholding held in excess of 20% within 6 months.

GPG's view was that it was entitled, as an "underwriter", to rely on clause 19 of the class exemption.

The Panel's preliminary view was that GPG was not entitled to rely on the class exemption, however it granted a specific exemption which required GPG to dispose of any excess shares within the shorter of 30 days or until Tower held a shareholder meeting.

GPG initiated proceedings in the High Court in an endeavour to have the matter resolved by the Court.

However, now it is clear GPG will have less than 20% of Tower the issue is effectively dead.

The Panel has therefore agreed with GPG on the following course of action:
· GPG is to discontinue its proceedings against the Panel in the High Court;
· The Panel's hearing scheduled for 7 August 2003 has been cancelled;
· The Panel will revoke the specific exemption it granted to GPG.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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.

Related News:

Tower to return 'initial' $70M of capital from sale of life business
Tower shares fall to 2-month low as licensing requirements may weigh on capital returns
Tower's licensing talks with RBNZ may push up minimum solvency requirements
Tower names Hancock as new chief executive, replacing Flannagan
Tower posts first-half profit as asset sales reap gains of $51.4 mln
Fidelity Life acquires most of Tower's life insurance business
Flannagan to leave Tower after strategic review, asset sales
Tower FY profit jumps 67%, to return $120M to shareholders; shares jump
Tower sells medical insurance unit to nib for $102M
Stiassny joins Tower board as questions linger over strategy