Lookers PLC (LSE:LOOK) shares plunged 10% on Thursday morning as the London-listed car dealer announced shareholder Cinch intended to block its proposed sale.
Having withdrawn a letter of intent to back Global Auto Holdings Limited's takeover of Lookers, 19.2%-stakeholder Cinch will now vote against the takeover.
“Lookers is re-engaging with other shareholders to understand whether [resolutions] to implement the acquisition are capable of being passed,” Lookers said in a statement.
Another shareholder, J O Hambro Capital Management, has sold down part of its stake in Lookers meanwhile, leaving Global Auto the potential to buy just 11.2% of the company.
Lookers shares fell 10% on the news, with a meeting over the acquisition set to take place later this month.