Pendragon Group (LSE:PDG) PLC is considering a third option after AutoNation entered the fray to buy the Nottingham-based car dealership.
Shares jumped 11% to 33p following the development, which came after the market close on Tuesday and ahead of half-year results today.
Last week, Pendragon agreed to sell its entire UK motor business and leasing business to Lithia Motors, setting in train a series of other interested parties to throw their hats into the ring.
That deal would mean it will operate as a standalone Pinewood business, making it a pure-play Software as a Service (SaaS) business. Pinewood is a dealer management system.
Since then, Pendragon has attracted takeover interest.
On Friday, it revealed that it received a revised takeover proposal from Hedin Mobility Group AG and PAG International Ltd, or Penske worth 32p per share.
This was a 14% improvement from the 28p per share offered previously, which Pendragon rejected, saying it fundamentally undervalued the company.
Adding further spice, Pendragon revealed a further approach on Tuesday, this time from AutoNation, also at 32p per share, valuing the company at £447 million.
AutoNation is an American automotive retailer based in Fort Lauderdale, Florida, which provides new and pre-owned vehicles and associated services in the US.
Pendragon chief executive Bill Berman said he is considering the approaches in consultation with shareholders.
“We will provide a further update at the appropriate time."