COUNT Financial Limited has bought a 4.9% interest in Mortgage Choice after the company rejected talks of a merger.
Count also advises that it had recently approached Mortgage Choice’s board and management on a confidential basis to discuss a merger between the two companies.
These discussions involved Count proposing a merger price incorporating a considerable premium to the then Mortgage Choice share price.
Count said following the structural downturn in the mortgage broking industry resulting from the impact of the ongoing global credit crisis, it believed a transaction resulting in consolidation would reduce the risks Mortgage Choice faces as a stand alone entity.
But Mortgage Choice did not share Count’s enthusiasm.
Following Count’s approach to Mortgage Choice, its board of directors advised that it did not wish to discuss a merger with Count at this time.
Count Financial is being advised by Lehman Brothers.
Mortgage Choice shares jumped 12 cents or 13.64% to close at $1.00 yesterday.
Australian Property Journal
