Receivables finance company CML Group has rejected a takeover offer from Consolidated Operations Group, which was previously its preferred suitor, in favour of a higher offer from Scottish Pacific.CML announced yesterday that it had terminated a scheme implementation agreement with COG and entered into a deed with Scottish Pacific, under which Scottish Pacific proposes to acquire 100 per cent of the issued capital of CML.Scottish Pacific, which is owned by private equity firm Affinity Equity Partners, won out with a bid worth 60 cents a share, made up of 57 cents cash and a fully franked dividend of 3 cents. The offer represents a premium of more than 20 per cent over the recent CML share price.COG's offer of cash and share options was worth 48 cents a share.COG looked to have got the deal done back in November, when it announced its plans to merge with CML. The CML board backed the COG bid and maintained that stance until the end of January.But yesterday CML said it was terminating the COG agreement "for material breach by COG", arising from COG's purchase of CML shares "as well as other matters".In January COG acquired a 17.4 per cent stake in CML to shore up its position in the bidding duel. The move backfired.CML is a specialist factoring, invoice discounting and equipment finance company. It purchased $902 million of invoices during the December half and advanced $115 million of equipment finance.It made a net profit of $1.5 million for the half, on revenue of $24.8 million.The CML and Scottish Pacific businesses are closely aligned. COG has suggested that the ACCC may have problems with their merger.