Insurer Tower Ltd has called off its bid for New Zealand owned rival Fidelity Life Assurance Company Ltd for the time being, saying its target would not provide requested information.Earlier this month Tower gave notice of an intention to offer $82 per Fi
Insurer Tower Ltd has called off its bid for New Zealand owned rival Fidelity Life Assurance Company Ltd for the time being, saying its target would not provide requested information.
Earlier this month Tower gave notice of an intention to offer $82 per Fidelity share, comprising $55 in cash and $27 in Tower shares. The bid valued the target at $118 million.
Today Tower said the notice was due to expire on October 31 and it was decided to let it lapse.
Since the notice was made, Fidelity had published its audited accounts for the year ended June 30, 2010.
"There are matters raised in those accounts that need to be thoroughly analysed, and their implications evaluated, before Tower decides any future course of action," chairman Tony Gibbs said.
He said Tower had hoped that the directors of Fidelity would provide to Tower certain additional information in relation to the company but it had not. The information was no more than Tower, as a listed company, provided to its own shareholders.
Fidelity was founded by Gordon and Shirley Watson in 1973 with a vision of a New Zealand owned and controlled life insurance company. It provides life insurance, personal protection, business insurance, and savings and investment products in New Zealand, including KiwiSaver products.
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