Tower chief hits back at Hanover

By PAULA OLIVER

Tower chairman Olaf O'Duill yesterday told Hanover Group to "get a life" after the company's executive chairman attacked his independence and questioned his performance.

O'Duill came under fire on Friday night after he appointed two new directors to Tower's board.

Neither were from 9.5 per cent shareholder Hanover, which has publicly locked horns in several bitter battles with Tower's biggest shareholder, Guinness Peat Group.

That led Hanover executive chairman Mark Hotchin to launch an attack on O'Duill, saying he had publicly sided with GPG, shown highly partisan conduct, and been an autocratic blusterer.

O'Duill, who has been leading Tower through its reconstruction phase since he took over in February, labelled the comments nonsense.

"When people are beaten at the game sometimes they choose to play the man as opposed to the ball," O'Duill said yesterday. "Anybody who knows me knows damn well I'm beholden to nobody. I operate without fear or favour."

Hanover has claimed that it wrote to Tower's board several times seeking representation.

The financial services group built up most of its stake in Tower around the time the insurer underwent a massive recapitalisation as a result of massive losses.

Hotchin argued that Hanover should be allowed one board seat, especially given that GPG had two when it held almost exactly the same level of shareholding in Tower.

O'Duill yesterday fired back by saying that he and Tower's board had followed a proper, deliberate process in appointing new board members.

After announcing at the company's annual meeting in March that a formal search would start, shortlisted candidates had been interviewed and two men, John Spencer and Maurice Loomes, appointed.

Another member could be appointed by the end of the month.

O'Duill said that if Hanover was serious about getting a seat it should have contacted him personally.

"They have never once contacted me personally.

"For better or worse I'm the chairman. It's not something I sought or wanted, but I am the chairman. They didn't contact me."

O'Duill said Hanover had made no secret of its antipathy towards GPG, and the last thing he needed was directors squabbling with one another.

He said that when the next appointment was made to the board that would mean five out of eight directors would have been replaced, as well as the chief executive.

"I reckon that's a fair demonstration to shareholders that we are serious about being held accountable and responsible."