Pendragon PLC, the used car dealership, confirmed it received an unsolicited, preliminary and highly conditional proposal from Hedin Mobility Group at 29p per share.
According to a statement, the board is considering the proposal, made last Wednesday, and urges shareholders to take no action currently.
As required by market rules, Hedin, the Swedish car dealership, has until 5 pm on 24 October to confirm its intention as to whether it will be making an offer for the firm.
Shares were priced at 22.7p on the day the proposal was made on 21 September, with shares 18% today currently trading at 27p.