Hedin, PAG International to drop bid for British car dealer Pendragon

(Reuters) – Hedin Mobility Group and U.S.-based PAG International said on Wednesday they will not make an offer for British automotive retailer Pendragon, just a fortnight after sweetening their takeover proposal.

Hedin, which holds a 27.6% stake in Pendragon and is the top shareholder, and PAG had sweetened a proposal to buy the company for 32 pence per share last month. The London-listed retailer had earlier rejected a proposal of 28 pence per share.

Shares of Pendragon were down 6.2% at 33 pence at 1328 GMT.

The company announced last week that it is considering an unsolicited proposal from AutoNation for about 447 million pounds ($544.2 million) in cash.

Pendragon is currently amid a sale of its UK motor and leasing businesses to Lithia Motors for 397 million pounds.

(Reporting by Eva Mathews in Bengaluru; Editing by Shweta Agarwal and Sherry Jacob-Phillips)