Pendragon extends Vardy bid offer

Alfa Romeo is one of Pendragon's leading franchises

Car dealer Pendragon has extended its bid offer for rival firm Reg Vardy to next month after investors holding just 28% of shares backed the deal.

Reg Vardy's board is backing the £450m bid from Pendragon, whose 230 outlets included franchises for carmakers such as Maserati and Alfa Romeo.

However, Reg Vardy could be the subject of a rival bid from car dealer Lookers.

Lookers has been trying to secure financial backing for a bid and plans to reveal its intentions next month.

In a statement, Pendragon said its 800 pence per share offer had been accepted by investors holding 28.3% of Reg Vardy's shares in the initial acceptance period.

Sir Peter Vardy, son of the founder of the business, and other directors of the firm have agreed to sell their shares.

Pendragon will now extend its deadline for acceptances of the offer to 18 January.