International bidder drops out of Pendragon takeover saga

One of the potential suitors of Pendragon, the UK car dealer group at the centre of takeover talks with several prospective buyers, has publicly backed out.

Hedin Mobility Group and Penske Auto Group International had entered into takeover talks on September 20 with a rival potential bid to that of Lithia Motors, but now they have just confirmed they do not intend to formally make an offer for Pendragon.

Stock market rules mean that now, and for the next six months, Hedin and Penske only have the right to make an offer for Pendragon if they have agreement from Pendragon's board, or if another third party announced a firm intention to bid for Pendragon, or under certain other strict circumstances.

Their bid had been raised to 32p per share on September 22 to be more attractive to shareholders and to compete with Lithia's proposal, which has the support of Pendragon's, however this week Lithia Motors submitted a revised bid that added £117 million more to its original plan.