Tower chairman flags imminent retirement

By NZPA

Monday 10th February 2003

Tower chairman Colin Beyer has signalled his intention to quit as chairman of the transTasman financial services company.

Mr Beyer, who has been on the board since 1989, told NZPA today that he had "not put a date" on the move, although a media report said he planned to step down within six to 12 months of Tower's annual meeting on March 27.

He and two other directors Lindsay Cuming and Olaf O'Duill are up for re-election.

Mr Beyer said he had been considering stepping down for some time, but the timeframe depended very much on what happened to the troubled company.

"Present intentions are one thing but future behaviour based on what is then the situation is different and I certainly wouldn't put a firm time on this."

Mr Beyer confirmed he would be meeting with GPG New Zealand director Tony Gibbs on Wednesday, after which he would probably have something to say.

But he rejected any suggestion that he had been put under pressure by GPG or anyone else.

He was also critical of the media, whom he said had been "interviewing their typewriters and saying the board should all step down and things like that, which I find absolutely amazing".

"Have they done that with any other company that has made a loss? I don't think so."

Tower fell from grace in November with a drastic profit warning, followed in December by a $74.9 million loss for the September year.

GPG recently became Tower's biggest shareholder by snapping up a 9.93 percent stake, just below the shareholder cap which is due to be removed later this year.

Mr Gibbs has continually declined to say what GPG's intentions for its stake are.

Speculation is that GPG will call a special meeting after the annual meeting to eject Mr Beyer from the chair if he is re-elected, the New Zealand Herald said today.

A statement of Mr Beyer's intentions will go out to Tower's 100,000-plus shareholders this week.

Tower has been without a chief executive for more than six months since James Boonzaier left under a cloud in July.

Mr Beyer laid the blame for Tower's performance largely at Mr Boonzaier's feet.

Tower's share price has dived from $3.55 after the profit warning to $2.11 today.

GPG has previously tried to merge Tower with its Tyndall Australia unit. Tower fought the move, and eventually Tyndall was bought by insurer Royal & SunAlliance.

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