Mortgage lender Kensington said that it was in advanced takeover talks with an offer likely to come in below the previous day’s closing price of 560.5 pence ($11.14).By 1346 GMT, shares in the specialist lender were down 6.6% to 523.5 pence ($10.41), its lowest level since July 2005, valuing the group at around 275 million pounds. ($543.3 million). The shares had been trading up almost 11%. "There can be no certainty that any such offer will be made but in the event that one is made it is likely to value the group at a price below yesterday's closing share price," it said in a statement.Kensington has said it is reviewing its strategic options and it confirmed in April that it was in early takeover talks with unnamed parties. Kensington, which provides mortgages to the self-employed, older-borrowers and people with poor credit histories, declined to name its suitor on Wednesday. Analysts have speculated a large investment bank building an integrated mortgage securitization model could be quick to snap up the firm. Meanwhile, British lender Paragon said on Tuesday it was not interested.Kensington told the market in February its outlook for 2007 profit remained uncertain, after a competitive first quarter.
May 24, 2007
