Impac Rebuffs Merger Offer From Apex Mortgage Capital

Impac Commercial Holdings Inc. said Tuesday that its board unanimously rejected a merger bid from Apex Mortgage Capital Inc., opting instead to proceed with its previously announced plan to be acquired by Amresco Capital Trust.

After consulting with its independent financial advisor, Bear Stearns & Co., Santa Ana-based Impac Commercial said the board concluded that the Apex proposal was not superior to Amresco’s stock bid of about $5.91 a share.

Impac, a real estate investment trust that has been hard hit by a credit crunch in the commercial mortgage market, said Apex uses short-term financing that could be vulnerable to interest rate increases and refinancing risks.