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Mortgage lender invites bids

Wed, 23 Jul 2008

Buy to let specialist mortgage lender Paragon mortgages has publicly confirmed that it will consider takeover bids. Potential takeover companies are numerous, and Paragon are already considering offers and undertaking due diligence to assess them.

Paragon released a statement that said: "In order to determine whether any of these approaches may form the basis for an acceptable offer or offers, the Board has entered exploratory discussions with, and is providing certain due diligence access to, the parties concerned."

Paragon was hard hit by the credit crunch due to high exposure to the sub-prime mortgage crisis in America. Shares, which have suffered badly in the last year, rose at the rumour of a takeover.

The mortgage news was accompanied by plans by sub-prime lender Edeus to offer customers discounts should they redeem the remainder of their mortgage loans .
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