NZ stocks: Yet more drama for Tower shareholders

By PAUL PANCKHURST

It's a week of new instalments in long-running stories.

Tower shareholders will be in for yet more drama as the company's board decides between two proposals to recapitalise the distressed insurer.

If the board decides to abandon its agreement with Guinness Peat Group and go for a rebel proposal led by First NZ Capital, a public announcement is likely today.

But if it chooses to stick with the GPG-backed deal, shareholders will trek to Wellington on Friday to vote for or against it themselves.

Adding to the confusion, the meeting could go ahead either way.

What is known is that by the end of the week Tower will have committed to an issue of new shares to clear debt from its balance sheet.

INL shareholders at a special meeting in Wellington are being asked today to approve the $1.18 billion sale of the company's publishing assets to Fairfax.

The vote is seen as a formality for the company, which is 45 per cent owned by News Corporation.

After lifting its stake in Tranz Rail to 19.9 per cent, Toll Holdings will sell its takeover bid to institutions.

Toll managing director Paul Little is to meet institutional investors in Auckland and Wellington today and tomorrow.

Toll is offering 95c per share.

The all-encompassing makeover of New Zealand's stock exchange, also moves forward today.

It is the first day of the new trading hours of 10am to 5pm, instead of 9am to 4pm.

Trade execution cut-off is 5.30pm, company announcements will be accepted for release until 6pm, and the settlement cut-off stays unchanged at 4pm.