Briefly:

(February 15, 2008) Loring Ward International has formed a special committee to review and evaluate an unsolicited takeover bid from its largest shareholder, Werba Reinhard Holdings Ltd.

In a press release issued on Friday, the company questioned whether the proposed offer is bona fide, pointing out that the offer constitutes an “insider bid” under Canadian securities law. The relevant laws would have required the insider to pay for an independent valuation, which Loring Ward would have had to supervise. Such a valuation was not undertaken.

At this time the company is advising shareholders not to deposit any shares to the offer, and to wait until the board of directors have formed a recommendation.

Loring Ward has retained BMO Capital Markets as its financial advisor and Stikeman Elliott LLP as its legal advisor.

Post-retirement health care overlooked

(February 15, 2008) With endless reports on Canadians’ failure to save for retirement, it probably comes as no surprise that few are factoring health care expenses into the overall cost of their golden years.

A survey by Sun Life Financial found that only 9% of working Canadians have taken such costs into account. A full 80% of respondents said they expect their provincial health care plan to be sufficient.

Half of respondents have taken no steps whatsoever to defray the expected costs, whose estimates range from an annual outlay of between $500 and $13,000. Nationally, only 11% said they had purchased personal health care insurance.

Employer benefits are expected to pick up some of the slack, with 36% saying their former bosses would look after them.

“While some employers are shifting away from full employer-paid benefits, a great number of them are also looking for ways to provide their employees with access to coverage in retirement,” said Brigitte Parent, senior vice-president, group benefits, Sun Life Financial Canada.

(02/15/08)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.