Allied shares climb on news of merger

Allied Farmers is to merge its finance arm with Nationwide Finance. Allied Prime Finance will merge with the Hanover Group-owned company to form Allied Nationwide Finance.

The merger will create more than $310 million of assets and close to $40 million of equity. The deal is expected to be completed at the end of next month.A meeting of Allied debenture stock holders is expected to be scheduled around June 13.

Allied shares yesterday closed up 4c, to $2. Kermadec raises capital for office

Kermadec has agreed to buy an Auckland office building for $20.5 million.

The 16-level City Rd office was partially funded by the placement of $9.8 million worth of KPF shares with institutional investors at $1.07 per share, increasing Kermadec's portfolio value to $125.7 million. Kermadec also plans a share purchase plan for ordinary shareholders.

- NZPA