Troubled Kiwi life insurer Tower is providing shareholders with some sleepless nights as they ponder two conflicting proposals to recapitalise the distressed insurer. The board is expected to decide today if it should quit its deal with Guinness Peat Group and go for a proposal made by First NZ Capital.

Whichever way it goes, Tower must commit to an issue of new shares to clear debt from its balance sheet. This is expected as soon as a decision is made on the proposals.

GPG has threatened to walk away if its deal is called off, but shareholders say the First NZ proposal would return them more. If the board sticks with the GPG deal today, a shareholders’ meeting in Wellington on Friday will decide the issue once and for all.