Tower cautious about Hanover director

By PAUL PANCKHURST

Tower chairman Olaf O'Duill was cautious yesterday on the idea of board representation for Eric Watson and Mark Hotchin's Hanover Group, the second-largest shareholder in the troubled insurer.

He was "very aware" that Hanover and Tower's largest shareholder, Guinness Peat Group, were "not exactly getting on as bosom buddies".

"And the one thing that I don't want is a fractious board."

Financial services group Hanover last week moved to a 9.5 per cent stake.

Corporate raider GPG has 17.1 per cent.

The pair clashed in the lead-up to Tower's $210 million capital raising.

Hotchin, the co-owner of Hanover, believed that a board with representatives from both companies would work - "unless any particular party had an agenda other than the best interests of the company".

GPG has two seats on the board.

Tower is seeking three directors - two from New Zealand and one from Australia.

O'Duill said the New Zealand search was well advanced.

In Australia, candidates were yet to be interviewed.

He said Hanover was welcome to put up names at any time - but a board seat was not guaranteed.