Metlifecare shares surge on takeover talk

Shares in Metlifecare surged over 11 per cent this morning, on reports two large Australian companies are interested in taking over the retirement village firm.

By 11.15am today shares in Metlifecare were up 31c at $3.05, after a report in today's National Business Review (NBR) said a takeover bid for the company was imminent.

Metlifecare's chief executive Gavin Aleksich was unavailable for comment this morning.

The NBR reported that Primelife Corporation had hired advisers to prepare a bid to major shareholders, while property group FKR was also interested in bidding for the company.

Both Australian firms are listed on the ASX.

According to the NBR, a "standstill" agreement, which stopped major Metlifecare shareholders' investment group Todd Capital and founder Cliff Cook from buying or selling more shares in the company, recently expired -- prompting the takeover talk.

The standstill agreement was signed in 1999 to block an attempted takeover of the company by Eric Watson and Mark Hotchin's Hanover Group.

Hanover sold its 10 per cent stake in Metlifecare in May this year for $2.15 a share.

NBR reported Mr Cook as saying his 25.2 per cent stake was not for sale, while Todd Capital chairman John Todd said he was unaware of any interest in the company's 34.9 per cent stake.

Metlifecare operates 13 lifestyle villages with 2000 residents nationwide, equal to an 11 per cent share of the retirement village market.

Shares in Metlifecare have ranged between $1.91 and $2.80 over the past 12 months.

- NZPA