News

Paragon rejects offer, ends talks

15 September 2008 17:42:00

Buy-to-let mortgage specialist Paragon said it has terminated all current discussions about a possible takeover of the company, having rejected a 125p per share cash offer.

"Having taken account of the views of its leading shareholders, the board has informed the proposed offeror that it does not intend to pursue the proposal any further," said the group.

"Although other discussions have been taking place during this period, the board does not believe that these discussions are likely to result in an offer being forthcoming which it would consider to be acceptable," it added.

The group also said that it has continued to trade in line with expectations during the eleven months to 31 August, with small positive variances in net interest income and costs balanced by reduced other income and increased impairments.

Paragon confirmed in July that it has received takeover approaches from unnamed parties.

The company's shares closed down 14.7% at 81p on Monday.

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