The consortium which was putting together a takeover bid for car dealer group Lookers has announced no formal offer will be made.

Following the statement from Trefick, Moor Park and Palos, Lookers told the Stock Market that discussions had ended after it earlier received an indicative proposal at a level materially lower than the 80p per share which had previously been indicated.

The consortium said it put forward a proposal that it believed fully valued Lookers based on the new information received following due diligence, but the board of Lookers had informed it that it is not prepared to continue discussions on this basis. 

It added that it no longer intends to make an offer. Trefick, the investment vehicle of Jack Petchey, already holds a 17% stake in Lookers.

Lookers shares dropped 17% to 57.75p, the level at which they traded before news of the consortium's possible bid emerged.