Tower has abandoned its takeover attempt of Fidelity Life after strong opposition from the independent life company’s major shareholders.

Fidelity said in a NZ Stock Exchange announcement last week the offer was “inappropriate and unhelpful and is pleased with this development”.

The takeover offer by Tower had been due to expire on October 31, but it says the move was launched due to the lack of publicly available information on Fidelity.

Tower Chairman Tony Gibbs says the terms contained in its takeover notice were based on the limited publicly available information on Fidelity.

“Tower was hopeful that the directors of Fidelity would provide to Tower certain additional information in relation to the company,” he said.

“That information was no more than the information Tower, as a listed company, provides to its own shareholders and the market. This has not been the case.”

Mr Gibbs says since the takeover was announced Fidelity has published its audited accounts.

“There are matters raised in those accounts that need to be thoroughly analysed, and their implications evaluated, before Tower decides any future course of action,” he said.

Fidelity took an alternative view saying it “recognises that Tower has made this decision having reviewed its published, audited accounts which demonstrates the very strong continued performance of the company”.

Tower proposed a combination of cash and scrip valued at $NZ55 ($42) a share for Fidelity.

The deal ran into trouble when the trusts associated with Fidelity’s founder and directors rejected the offer.

Those trusts own about 70% of the independent life company and another major shareholder, Farmers’ Mutual Insurance, which owns 11%, also rejected the offer.