TOWER NEW ZEALAND OFFERS TO BUY FIDELITY LIFE

New Zealand-based Tower has offered NZD118m ($87m) to buy locally based Fidelity Life. The NZD82 a share bid is made up of NZD55 in cash and NZD27 in Tower shares. The offer is only fractionally above the NZD80 that Fidelity shares were last trading. The offer was described by Fidelity as unsolicited. The assurer is closely held, with only about 150 shareholders. About 53% of the stock is owned by a single family trust. Tower New Zealand, which split off from life assurer Tower Australia in 2006, operates in health & life, non-life and investments. Last year Tower New Zealand posted a net after-tax gain of NZD50.08m for the year to September 30 2009, up 23.8% year on year.