tower nz takeover rumour in afr

Anyone heard about or read this?

http://www.stuff.co.nz/stuff/0,2106,3647152a13,00.html

Tower's share price has the market buzzing with a 28 per cent rise in six weeks.

But chief executive Jim Minto said that though he was not ruling out spinning off the Australian parts of Tower's business, the most likely course of action at present was to not change anything.

Tower's share price has risen from $2.11 at the end of February to $2.70 at the close yesterday. Trading has been brisk.

An Australian Financial Review report said there had been talk recently that a Macquarie Bank-led consortium was looking to buy Tower and break it up.

"Last year I said publicly that we would look at a range of options, including spinning off the Australian parts of the business," Mr Minto said.

"So we would look at all options, including buying other things and doing anything that we felt was of good value to the business and its shareholders. "I can't really confirm anything and I wouldn't deny anything. . . it's our job to keep looking at options."

Early last year, Tower spun off its financial planning businesses – Bridges and Tower Trust – selling them to Australian Wealth Management in return for cash and AWM shares that were distributed to Tower shareholders.
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"With AWM it was a spin-off rather than a sale," Mr Minto said. "So there's a range of options including spinning off parts of the business like we did with AWM.

"Anything's a possibility. The fact that we might just do nothing is the most likely scenario at the moment."

At present, Tower was busy integrating PrefSure – an Australian life insurer that it bought in January – into its business.

Credit ratings company Standard and Poors has raised its credit rating for PrefSure to BBB+. Tower was likely to strengthen its competitive position in the Australian risk insurance market and the growth levels and efficiencies of its New Zealand business were also expected to improve, Standard and Poors said.