Pendragon slumps as AutoNation says it won't make an offer

Pendragon announced in late September that it had received an unsolicited proposal from AutoNation at 32p per share in cash. But AutoNation confirmed in a statement after the market close on Tuesday that it had decided not to make an offer.

The news came just weeks after Pendragon’s top shareholder, Hedin Mobility, and PAG International abandoned their 32p-a-share joint bid.

Pendragon said last month that it had agreed to sell its UK motor and leasing business to US firm Lithia for £250m.

The two companies also agreed to form a partnership including the rollout of Pinewood - Pendragon’s dealer management software (DMS) business - to Lithia Motors' existing 50 UK sites and create of a joint venture to accelerate Pinewood's entry into the North American DMS market.

At 0820 BST, the shares were down 7.2% at 31.51p.