Mike Manley, the British CEO of Florida-based AutoNation, is contemplating intervening in the £500 million acquisition of Pendragon Group (LSE:PDG) PLC, the UK's second-largest car dealer, according to the Sunday Times.
AutoNation, which previously had a 32p-a-share bid rejected, is said to have the financial capacity to offer up to 38p-a-share, potentially outbidding the current front-runner, American firm Lithia Motors.
Such a move could prompt Pendragon's board to reconsider its endorsement of Lithia's offer, the paper noted.
Alternatively, Manley could acquire a 28% stake in Pendragon from Hedin Mobility Group, its largest shareholder, to leverage a counter-bid.
Hedin, led by Swedish businessman Anders Hedin, recently withdrew a joint bid with Penske Automotive Group and is reportedly open to selling his stake for cash.
This comes after two failed takeover attempts of Pendragon last year, leading Hedin to consider exiting his investment, which has nearly doubled in value over the past month, the Sunday Times article said.