Allied Farmers is offering to swap new shares for Hanover and United investors' claims over Hanover's assets.
However, the possibility of another offer came on Tuesday as Allied shareholders expressed their concern at the annual meeting that the rural services company was moving away from its core business.
An alternative is just days away, according to market sources.
Craigs Investment Partners broker Chris Timms said yesterday he had gone through the list of possible companies that could be ranked as well-known and trusted and had narrowed down his list to GPG and Pyne Gould Corporation and its Marac subsidiary.
GPG was well known and had done the "right thing" for investors for a long time, he said.
The company already held 4.1% of Allied Farmers' stock.
South Canterbury Finance's Allan Hubbard holds 4.2%.
"GPG will see Hanover's distressed assets but the company is known for taking a long-term view of assets and has cash on its books. GPG is also an opportunistic investor."
GPG would have the ability to separate the distressed assets and manage them separately from the solid investments, Mr Timms said.
"The real issue here is that the Allied Farmers issue is not that attractive to its existing shareholders and it is not that attractive to existing shareholders in Hanover."
Hanover shareholders would have to move from a debt position to holding equity with Allied Farmers, something that was not a natural fit for those investors, Mr Timms said.
Hanover would want the best outcome for its debenture holders and if someone offered cash rather than script, it would probably be a more attractive deal as a way of moving on.
There would be a great acceptance of the deal if it involved cash, he said.
There was potential for an unlisted company to bid for the Hanover assets but Mr Timms could not think of a natural fit.
Hanover Finance said it was unaware of a potential rival bidder for its assets.
Hanover chairman David Henry said Hanover had only received the Allied Farmers proposal and had not received an offer from any other party.
"We have no knowledge of any other interested party and we will not speculate on media commentary.
"We are aware of some other interest in the past few days but we now understand this is not going to proceed in a formal offer."
Hanover understood the party might look to take a position with Allied Farmers if the vote to approve the Allied Farmers deal was successful, Mr Henry said.
Mr Timms said that seemed to confirm GPG was the mystery bidder.
Instead of buying Hanover, it could increase its stake in Allied Farmers, get a seat on the board and have some sort of control.
"You would have to think that a number of the new shareholders will want to sell and GPG can go on the buying side of the market," he said.
Allied Farmers confirmed that Resimac, Australia's largest funder of non-bank lenders, was the investor it said in September had agreed to provide $7 million of new capital.
