The boss of Aussie Home Loans, John Symond, has tipped the struggling non-bank lender RAMS Homes Loans as a takeover target for an Australian bank, but says he is not interested in grabbing the company.
RAMS has emerged as the latest Australian victim of the US subprime mortgage crisis, which has afflicted global equity markets for weeks.
While it had no direct link to the troubled subprime sector, RAMS revealed on Wednesday that exposure to volatile international credit markets would affect its financial performance in 2008.
After that news, its shares plummeted by 52 cents to end at 89 cents on Friday, well below its July 26 listing price of $2.50.
Speaking to the Sky News program Business Sunday, Mr Symond tipped a now heavily discounted RAMS would become the focus of takeover interest.
"They are now a prime takeover target for a lot less than what they originally listed their shares at $2.50," Mr Symond said.
"Who knows, maybe an Australian bank will pick them up for less than half price."
However, he dismissed suggestions Aussie Home Loans might be interested in the company.
"Aussie wouldn't go and acquire a brand, because we believe we've got the best consumer brand," he said.
"To buy and pay money for a brand, and not use that brand, that doesn't fit into our plans."
Mr Symond said Aussie was on the lookout for acquisitions and the US subprime crisis would lead to consolidation of the non-bank lender market.
"I think the shake-up will accelerate the rationalisation of the non-bank industry," Mr Symond said.
"There are many smaller organisations who are very good, they don't really have a brand name, and I believe they would be very attractive - certainly attractive to us.
