Thomas Reeh, chief executive at blackandwhite.co.uk, said he expected further offers from lenders such as db and Morgan Stanley to appear as they seek a stronger foothold in the non-conforming market.
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He said Investec’s deal was a share transaction and a cash transaction may be favoured more by Kensington to get an immediate cash boost. He added that db already had a current interest in Kensington through its subsidiary Money Partners, as it funded some of its mortgages.
Reeh said: “I definitely think db will be making an offer and that’s good news for Money Partners in particular, with its healthy back book and performing credit. The reality is that whoever buys Kensington will have a much bigger balance sheet and in this market you need deep pockets to compete.
“All big lenders have aggressive growth aspirations and are after a serious share of the market. Buying established lenders like Kensington is the way to do it, as they immediately get access to all the brokers and business. There are interesting times ahead.”
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Ian Giles, director of marketing for Kensington, said: “While we are in the offer period, it is clearly possible for other bidders to come in and that will remain so until the bid is approved by shareholders. We cannot speculate on who may or may not be interested. The combination of Investec’s book and access to lower funds and our brand creates a really strong combination, which we’re really excited about.”
