Tower chasing Aussie sharebroking firm

by GEOFF SENESCALL

Tower Corporation is understood to be close to buying an Australian sharebroker and financial services company for $A170 million ($224.7 million).

The Wellington-based fund manager, which itself has been the subject of takeover rumours, is believed to have its sights on Bridges Financial Services.

The move would boost Tower's Australian operation, which the company has indicated that it wants to expand. Tower has more than $1.2 billion of assets under management in Australia.

The Bridges deal would help to shelter Tower from a takeover.

Australian banks Westpac and ANZ are believed to have made approaches to the company. But Tower's chief excutive James Boonzaier has indicated that he prefers expansion through acquisition rather than merging with another player.

Speculation surrounding the purchase of Bridges points to a possible cash issue to finance the acquisition.

Mercantile Mutual was also thought to have been in the bidding process for the Australian asset, having previously confirmed an interest.

Bridges was formerly just a stock broker. But it has expanded its operation to now include financial planning.