Tower to let offer lapse

Tower, the insurer controlled by Guinness Peat Group, has put its hostile takeover bid for rival Fidelity Life Assurance on hold.

Chairman Tony Gibbs said the company will let its $82-a-share offer of cash and stock lapse at the end of the month after Fidelity wasn't forthcoming in providing new information to Tower. The target signalled its unease with the offer, calling it "unhelpful" and "inappropriate", and said it was uncomfortable giving company details to a rival.

"There are matters raised in (Fidelity's) accounts that need to be thoroughly analysed, and their implications evaluated, before Tower decides any future course of action," Gibbs said.

Shares in Tower fell 1.1 per cent to $1.86 in trading yesterday.