The bid would create a company with annual sales of £6 billion – but Lookers executives dismissed the offer of 1.15 Pendragon shares for each of its own as too mean.
In January, Pendragon saw off Lookers to take over car dealer Reg Vardy.
Pendragon chairman Sir Nigel Rudd said: ‘We believe there are significant benefits to shareholders from our continuing consolidation in the UK motor vehicle retail sector and this offer for Lookers is consistent with Pendragon’s strategy to deliver these benefits.
‘We have so far been unable to engage the Board of Lookers in meaningful discussions. Therefore, we are making these proposals directly to Lookers’ shareholders.’
In a statement, Lookers said: ‘The board of Lookers has always been open to discuss matters with Pendragon and its advisers and limited discussions have taken place.’
It said the offer ‘significantly undervalues’ the company and is not in the best interest of shareholders.
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