Radio New Zealand - Te Reo Irirangi o Aotearoa

Allied Farmers says it is not aware of any third party seeking to take a position with the company, despite suggestions from Hanover Finance's chairman that this may happen.

Rural services company Allied Farmers plans to swap its shares for the loan books of Hanover and United Finance.

Hanover Finance chairman David Henry, says while a potential rival bid for the struggling finance company has fizzled out, he understands the unnamed firm is instead considering taking a stake with Allied Farmers.

But Allied Farmers' managing director, Rob Alloway, says he has no idea what Mr Henry is refering to, and the rural services rural company has not been approached by any other party.

Meanwhile, Allied Farmers' chairman John Loughlin says in a letter to shareholders that the independent report on the proposed deal with Hanover concludes it is fair, and superior to the current moratorium or receivership, and that a better offer is unlikely.

Mr Alloway says he is yet to review the report, which will be sent to both Allied Farmers and Hanover investors early next week.

Allied Farmers shareholders will vote on the proposal at a special meeting on 8 December while Hanover Finance is holding its meeting on 16 December.