AutoNation to launch new bid for Pendragon?
09 October 2023
AutoNation CEO Mike Manley is reportedly considering making a fresh bid for Pendragon, the UK’s second-largest auto retailer.
An earlier AutoNation bid for 32p a share was rejected.
US rival Lithia Motors is currently leading the race to acquire Pendragon, in a 35.4p a share deal. Pendragon’s largest shareholder, Hedin, last week dropped a joint bid with US retailer Penske Automotive Group.
Hedin is reportedly yet to be convinced of Lithia’s cash and shares deal. Anders Hedin’s preference is to sell his entire shares for cash: the current deal is for 24p a share plus shares in Pinewood Technologies valued at 11.4p a share.
City sources suggest AutoNation has cash reserves to pay as much as 38p a share. This would value Pendragon in excess of £500m – and would be sufficient for the Pendragon board to drop its recommendation for the Lithia bid.
Manley, a Brit who was born in Edenbridge, Kent, could also acquire Hedin’s 28% stake and use this as leverage for a counter-bid.
Hedin’s stake has almost doubled in value over the last month.
Tags:
Why Subscribe?
As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:
- Get informed and boost your business potential
- More than 1,200 fellow executives have joined us since launch
- Independent, carefully crafted, unique content relevant to you and your business
- Develop a greater awareness of market trends and opportunities
- Access to a wide range of materials whenever, wherever and however you want it
- Significant discounts on ARN events, reports and other publications
