Liberty raises stakes in battle for Mike Pero

Australian funder Liberty Financial has made a stand to increase its stake in Mike Pero Mortgages from 10.1 per cent to 19.9 per cent, offering $1.07 for the shares.

Liberty's move is a further spoiler against the takeover efforts of rival New Zealand Finance, which has offered $1.05 for Mike Pero.

Until yesterday, Liberty held a blocking 10.1 per cent stake but bought just over 3 per cent on market before announcing its stand for a further 5.6 per cent.

The stand lasts until Monday night.

Liberty's 10.1 per cent has already blocked New Zealand Finance's takeover aspirations.

Market analysts said increasing the holding could give Liberty a seat on the Mike Pero board and was another sign of the Australian funder's interest in the company.

Liberty specialises in providing loans to borrowers who often do not meet bank lending criteria and provides financial products to Mike Pero. New Zealand Finance owns 62.86 per cent of Mike Pero and made a takeover offer at $1.05 before the dividend was announced.

Last month, Liberty blocked NZF's takeover in a lightning raid when it took its 10.1 per cent stake, preventing it from reaching the 90 per cent compulsory acquisition threshold.

In an independent valuation report this month, corporate adviser Crighton Anderson said NZF's $1.05 a share offer was fair as it fell within its 96c to $1.09 valuation range.

Crighton Anderson also said that Liberty Financial and NZF might seek to delist the mortgage broker's shares as both firms had clear incentives to eliminate minority shareholders from the share register.