Financial services group Mackay Permanent Building Society (MPBS) has pulled out of its proposed merger with Bank of Queensland (BOQ) in favour of a deal with Wide Bay Australia.
MPBS's board announced to shareholders yesterday that it would withdraw its recommendation to approve the merger with BOQ.
"The board of directors of MPBS has considered the Wide Bay offer and has determined that, having regard to the risks and benefits of both proposals, the Wide Bay offer is superior to the BOQ proposal," a company statement said.
"Accordingly, the MPBS board withdraws its recommendation that MPBS shareholders vote in favour of the BOQ proposal."
Last week, Wide Bay increased the scrip alternative under its takeover bid for MPBS from 0.65 Wide Bay shares plus $1.00 cash for each MPBS share. Bank of Queensland subsequently did not increase its offer.
Wide Bay launched a $52.6 million takeover bid for MPBS on October 29, offering shareholders a choice of $9.40 per share or 0.65 Wide Bay shares plus $1 cash.
An earlier offer in July offered a cash price of $8 per share.
