Tower warns of low-ball offer

01:58, Nov 12 2012

Tower is the latest company to issue a warning to its shareholder after come investors were contacted about a ‘‘low-ball’’ offer.

In a statement the insurance group said that Stock & Share Trading Company had written to its investors last week offering to buy their shares for $1 each. Tower shares ended last week with a market price of $1.92 and were unchanged in afternoon trade today.

‘Should you as a Tower shareholder receive such an offer, Tower strongly recommends that you seek independent advice and check the most recent market price for Tower shares on the NZX,’’ the company said in a statement.

Stock & Share Trading is an Australian company, whose sole director and shareholder is John Armour.

In recent months it has been writing to directors in a number of NZX-listed companies, offering to buy their shares, frequently at a heavy discount to the prevailing market price.

Since October last year, Stock & Share has been required to carry a warning statement on any unsolicited offers it makes, as part of an undertaking to the Financial Markets Authority.

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