Wed, 25 Nov 2009 8:33a.m.
A rival bid for Hanover Finance and subsidiary United Finance is reported to be possible within a few days.
A week ago listed rural services and finance company Allied Farmers announced it had signed an agreement with Hanover and United.
Under the deal it was proposed that Allied would buy the finance assets of Hanover and United in a deal worth about $400 million.
But today The New Zealand Herald reported a well known and "trusted" company was likely to offer Hanover and United investors a competitive alternative to Allied Farmers' debt-for-equity proposal within a few days.
A market source said he was helping another entity preparing a separate proposal, "which involves a superior capital structure and probably superior outcome".
Allied were not actually putting in much money, the source said.
There was "a reasonably good chance we'll have something on the table in three or four days".
The source said the potential offer would come from "a name that's very well known to New Zealanders and very trusted".
Yesterday, Allied also named the investor from whom it secured $7m of equity at the end of September.
The investor is Resimac Ltd, a pioneer of the Australian mortgage backed securities market that continued to sell securities backed by mortgages during the turbulent times in financial markets.
NZPA