Pendragon has confirmed it has received a new takeover approach from its largest shareholder.
Hedin Group (Hedin) has offered a 29p per share proposal for the London-listed car dealer, which is home to brands such as Evans Halshaw and Stratstone.
Currently, the Swedish group owns around 26 per cent share in the company, and its overall offer to buy the rest of the shares equates to around £400m.
It made an earlier offer – pitched at around 28p a share – in the spring but this was rejected by the dealership’s board.
The new offer is the same value as a separate offer made this summer by Lithia Motors, a US car selling giant with a market value of more than $7bn.
That approach hit the rocks after Hedin refused to engage.
The board of Pendragon is currently considering the latest proposal from Hedin together with its financial and legal advisers.
Shareholders in the FTSE All-Share company are urged to take no action at this time.
As required by stock exchange rules, Hedin will have to announce a firm intention to make an offer for the company by 5pm on 24 October.
Hedin operates more than 200 vehicle showrooms in Belgium, Norway, Sweden and Switzerland through its subsidiary, Hedin Bil.
The group has been a critic of Pendragon’s board in recent years, particularly on the issue of executive pay.
Pendragon operates more than 150 dealerships across the UK.