Sir Ron Brierley's Guinness Peat Group has all but secured the additional 15.3 per cent of Tower New Zealand it is seeking and yesterday said its $2.30 a share offer would not be extended.
GPG yesterday said it had received "advice from certain Tower shareholders" that they intended
accepting the partial offer and those acceptances represented 10.5 per cent of Tower's shares.
It was understood the acceptances were from two of Tower's three major shareholders, who are Australian fund managers Orbis with 5.01 per cent and Paradyce Cooper with 8.34 per cent and Brook Asset Management with 6.01 per cent.
Later in the day, the Business Herald learned another substantial shareholder had pledged 3 per cent of Tower stock to the offer. Along with acceptances already received, GPG had acceptances or indications thereof equivalent to just under 15 per cent of Tower's shares.
Given how close it was to reaching its target, GPG yesterday advised that its offer was full and final and would not be extended beyond its current closing date of June 19.
Last night Tower said GPG's offer was below the value placed on the stock by an independent adviser.
Tower said the shares were worth between $2.45 and $2.89, citing a report from Grant Samuel.
GPG, which already holds 19.7 per cent of Tower, is seeking to extend its holding to 35 per cent.
Assuming it secures sufficient acceptances, it must still gain shareholder approval for a stake of that size.
Tower shares closed unchanged at $2.19 yesterday.
