Pendragon terminates potential takeover talks

"Following a period of due diligence, a large international corporate presented a board-approved non-binding offer for the entire issued and to be issued share capital of Pendragon at a price of 29 pence per share, in cash," the company said.

The proposal was contingent on receipt of irrevocable commitments from all of Pendragon's major shareholders. The company concluded that the proposal merited engagement with its five largest shareholders and received strong support from four of them, who were willing to sign irrevocable commitments.

"However, Pendragon was unable to engage with one of these shareholders and therefore, given this lack of certainty, the bidder has withdrawn its non-binding offer and both parties have terminated discussions," it said.

"Pendragon continues to believe strongly that its market-leading proposition positions the company to capitalise on the growth opportunities and navigate near term market headwinds," it added.

At 0925 BST, the shares were up 10% at 23.69p.