Forum Archive Index - March 2000

[Derek Watt <dkw@paradise.net.nz>]

At 08:08 AM 3/2/00 +1300, you wrote:
>Hi Derek,
>
>Tower have a 10% share cap. written into the company constitution.  This
>means that no one person or company can own more than 10% of the company for
>the first 4 years they are a listed company.  In saying that however one of
>the company directors did mention to me at the pre-listing broker
>presentation that if some-one (and I think he was referring to GPG at the
>time) were to make a "fair and reasonable offer" for the whole company then
>it might be considered.
>
>There has been 'institutional' buying in Tower this week but on very small
>volumes.  It has helped the price slightly but the shares performance
>reminds me of Sovereign and it's lacklustre performance after listing and
>takeover by ASB.  Tower may have done it's shareholders a dis-service by
>setting a share cap.
>
>Kind regards,
>
>Sarah Corkill
>Direct Broking
>


Thanks Sarah, I appreciate your comments, I wasn't aware of the 10% cap,
although from what you say it sounds like anyone determined enough could
overcome it.
Apparently a buyer of Tower would also have a problem with a great many long 
lost shareholders whose shares are being held in trust (someone mentioned a
figure
of 30% of shareholders I think). 

Hugh, I don't know about a takeover being the only hope for TWR shareholders.
At current prices it makes quite a nice yield share for a diversified
portfolio.
Also there may be some capital gains next time the sharemarket picks up, in
a more
buoyant market I would expect TWRCA to be at about $3 (I bought a few at
$2.00 today,
now watch them fall !).

Cheers,
Derek.


>
>-----Original Message-----
>From: Derek Watt [mailto:dkw@paradise.net.nz]
>Sent: Wednesday, 1 March 2000 18:28
>To: sharechat@sharechat.co.nz
>Subject: [sharechat] AMP - TWR ?
>
>
>Strange that after AMP announces that its got a major acquisition coming up
>that towers shareprice starts heading north all of a sudden.
>I can't help but speculate that TWR may be their target.
>
>Derek
>
>(I don't own TWR or AMP shares at the moment)
>
>
>-----------------------------------
>Derek Watt
>http://members.tripod.com/DKWatt/
>-----------------------------------
>
>
>
>
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-----------------------------------
Derek Watt
http://members.tripod.com/DKWatt/
-----------------------------------




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