Penske Automotive Group on Wednesday said its PAG International subsidiary, together with Sweden's Hedin Mobility Group, submitted a cash offer to buy U.K. auto retail giant Pendragon, just two days after rival dealership group Lithia Motors Inc. announced its plan to purchase most of the same company for $350 million.
Pendragon in a Wednesday regulatory filing said its board considered the proposal, but concluded that it "fundamentally undervalues the company and is therefore not in the best interests of shareholders or other stakeholders" and rejected the Penske-Hedin bid.
Reuters valued the bid price of 28 pence (35 cents) per share at about $486 million.