“Once more, Pendragon has failed to substantiate how Lookers shareholders would benefit from becoming part of a lower growth business like Pendragon; and why Lookers shareholders should contemplate a transaction that could be significantly earnings dilutive for them,” said the Lookers board in the increasingly vitriolic battle for shareholders’ support.
Lookers said Pendragon appears to have acknowledged that there is a risk that some manufacturers will refuse to trade with Pendragon and therefore that there is a real risk that revenues will be lost.
“Pendragon knows it will only be protected by EU rules where it already has a franchise of a particular brand. Lookers would add that Pendragon does not operate six of the seven brands that Lookers has indicated that it considers to be at risk,” said Lookers.
The Lookers board urged shareholders yet again to reject Pendragon’s offer which it believes is neither ‘full’ nor ‘fair’.