Suncorp’s Tower win

QUEENSLAND’S Suncorp has won a bidding war against a rival for the $225 million takeover of New Zealand insurer Tower.

Rival Fairfax Financial, a Canadian firm, yesterday said it would not lift its bid for Tower.

Fairfax had lobbed a bid of $NZ1.17 ($A1.12) a share in February for Tower, a small player in NZ’s market offering everyday home and car insurance and even some specialist cover for farmers.

Suncorp then surfed in and offered $NZ1.40 a share for Tower – and the target’s board yesterday threw their weight behind that latest “superior” offer.

The deal still requires Tower investors to vote in favour of Suncorp’s offer.

Among potential hurdles for Suncorp include branding, with Tower promoting itself as a brand to be trusted because it was “owned by Kiwis”. The Brisbane-based financier will also have to consider the fate of Tower’s Pacific Island markets, where it does not currently operate.