Count and Mortgage Choice have not denied the likelihood of a possible merger of the two companies, despite the rejection of both organisations’ initial offers.
Count’s proposed merger price was declined, as was a revised offer suggested by Mortgage Choice to Count, Count chief executive Marianne Perkovic said.
“Both companies need to consider the current business environments each are operating in and then agree on the right price for both Count and Mortgage Choice,” she said.
“Due to the impact of the ongoing global credit crisis on the mortgage broking industry, consolidating would reduce the risks Mortgage Choice faces as a stand alone entity and provide significant opportunities for both businesses to excel and strengthen their product suites.”
Count yesterday announced it had acquired a 4.9 per cent stake in Mortgage Choice and that if a merger did go ahead it would want to retain the iconic Mortgage Choice brand.
“The next step for Count is to potentially move to a holding stake in the company and then put another offer on the table if Mortgage Choice doesn’t make another offer in the interim.” Perkovic said.
Count approached Mortgage Choice about a potential merger of the two companies, under advice by Lehman Brothers.
Mortgage Choice’s board of directors declined to discuss the possibility of a merger with Count at this time.
