Lithia ‘confident’ on Pendragon deal
02 October 2023
Lithia Motors CEO Bryan DeBoer indicated last week he believes his company will win the bidding war for Pendragon.
He said to BofA Securities analyst John Murphey he was confident Lithia “would be able to close the deal despite two competing bids, but also emphasised the importance of discipline”.
Last week, AutoNation submitted an offer, following two joint bids (one rejected, one still under consideration) from Penske and Hedin. AutoNation’s 32p a share bid matched Penske and Hedin’s.
“At this time, the only legally-binding offer Pendragon has received is from Lithia Motors,” said a Lithia spokesperson.
Pendragon will hold a meeting this Friday to accept or reject the Lithia bid. It requires a 51% vote or greater.
ICDP’s Steve Young said higher offers could come this week from Penske-Hedin or AutoNation, ahead of the shareholder vote. Lithia could also raise its bid.
Young also speculated whether Group 1 Automotive will put in a bid. Group 1 did not respond to a request for comment.
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