Car rental giant Europcar has rebuffed an offer from VW and Audi owner Volkswagen, according to reports, that values the hire firm at €2.2bn (£1.88bn).
A consortium led by the German vehicle manufacturer offered about €0.44 per share for Europcar earlier this month, sources told Bloomberg, asking not to be identified because the information is private.
However hedge fund-controlled Europcar said “thanks, but no thanks”, as it viewed the offer as too low.
News surfaced last year that the car maker was interested in bodding for the car hire company.
The €0.44 per share bid would represent about a 12 per cent premium to Europcar’s closing price yesterday and shares shot up today on the news by another 10 per cent.
It’s thought VW is interested in Europcar to access its infrastructure and technology in a bet on the future of mobility services, the sources said.
Although some demand for rental cars has recovered as jurisdictions loosen virus-related restrictions, car rental companies face other more permanent threats such as newer entrants offering ride-hailing and car-sharing.