GPG declines to comment on Tower share buy-up

Rumours are circulating that GPG was the buyer of a 1.5 percent stake in the troubled company on Tuesday night. Some 2.6 million shares changed hands for $2.00.

A month ago, a mystery buyer used the same brokerage to grab 5 million shares, around 3.4 percent of Tower, at $2.00 each.

If both parcels went to the same purchaser, it must disclose its identity to the Stock Exchange when its shareholding reaches 5 percent.

It is commonly believed someone is making a stand for a 10 percent chunk of Tower, the maximum one shareholder can own without special consent.

Speculation out of Australia is that the buyer is Sir Ron Brierley's GPG which has been a long time follower of Tower's fortunes.

New Zealand director Tony Gibbs was declining comment today, but market observers are recalling a previous unsuccessful attempt by GPG to merge Tower with its former financial services company, Tyndall Australia.

GPG have been actively traded in the last two days although its share price has remained static at $1.50. Tower shares were up 4c at midday to $2.03.

Tower has been seen as a takeover target since its stock lost around 62 percent of its value following a November profit warning.

The company reported a $75 million annual loss, of which around half was a write-down of its Australian operation, Bridges.

But Tower chairman Colin Beyer recently said he believed the true value of the company was well over $4 a share.

Meanwhile Tower's annual report has revealed that former managing director James Boonzaier was paid $2.8 million in salary and compensation when he left his position in July.

In all, the company shelled out $4.7 million in payments to its former chief executive and directors of its board and subsidiary companies in the year to September.

The payments are likely to bolster calls for the resignation of the directors and new blood at the board table.

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