Trading of Tower shares halted pending announcement

Troubled insurer Tower was suspended from trading on the New Zealand exchange at its own request today ahead of an announcement on its planned capital raising.

The company has received an alternative capital raising proposal to the $200m plan involving stakeholder Guinness Peat Group for which it was seeking approval at a shareholder meeting on July 4.

Tower's planned capital raising venture is to shore up its financial position and repay some of its $428 million of debt.

"The trading halt would allow the market to be informed on the status of the existing capital raising and an alternative proposal which had been received," Tower said in a statement today.

Tower's trading halt was expected to last until the Australian Stock Exchange's close on July 1.

Its shares closed on Friday at $1.48, a fresh four-week low.

- NZPA