Westpac coy on Tower bid

Westpac will not rule out speculation that it may be interested in buying the KiwiSaver business of Tower, but Pyne Gould Corporation subsidiary Perpetual Asset Management says it will not be making a bid.

Interest has mounted in Tower since its 35 per cent shareholder Guinness Peat Group said on Friday it would sell down most of its assets.

Rival insurer Fidelity Life Assurance has said it would be keen on buying Tower's life insurance division and may also snap up its KiwiSaver business.

Fisher Funds has also said it is keen on growing its KiwiSaver business.

Market sources have suggested Westpac may also be interested in Tower's KiwiSaver business and that Perpetual could be another potential bidder for the asset management arm.

A spokesman for Westpac said the bank was always looking to grow either organically or by acquisition.

"But we don't publicly comment on speculation."

Perpetual's Patrick Middleton ruled his company out. Middleton said its core interest was in building up its advisory business.