GPG says gets 35 pct of NZ's Tower

WELLINGTON, June 20 (Reuters) - Investment firm Guiness Peat Group Ltd GPG.NZ said on Friday it had reached its target 35 percent stake in New Zealand insurance and fund management company Tower Ltd TWR.NZ.

GPG, the British-based investment vehicle of veteran corporate raider Sir Ron Brierly, said its bid for an additional 15.3 percent was accepted by 36.4 percent of shareholders, and would be scaled back.

It also received the backing of 93.5 percent of voting shareholders to increase its stake as required under New Zealand takeover rules.

The offer, at NZ$2.30 a share, extends GPG's holding from just under 20 percent to 35 percent, and values Tower at NZ$440 million ($335.9 million).

Shares in Tower closed on Thursday at NZ$2.17, having traded between NZ$1.70 and NZ$2.64 over the past year. Tower is the second-largest health insurer in New Zealand and the third largest fund manager, with about NZ$6 billion invested.

GPG has previously said it wanted to raise its holding in Tower to a level similar with its other investments. (NZ$1=$1.31) ((Wellington newsroom tel 64 4471 4234, fax +64 4 4736 212, wellington.newsroom@reuters.com))