Fleet News

Pendragon bids for Lookers

CAR dealership group Pendragon has launched a hostile ‘take it or leave it’ bid for fierce rivals Lookers.

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.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee