(Alliance News) - Pendragon PLC on Monday extended its put up or shut up deadline for Hedin Mobility Group AB's proposed takeover as a newspaper report suggested the deal is as good as complete.

Shares in Pendragon were trading 6.3% higher on Monday morning at 28.70 pence each.

The Nottinghamshire-based car dealership chain extended the deadline, which has already been extended once, until December 9 "in order to finalise the necessary transaction documentation".

The PUSU deadline is when Hedin must announce a firm intention to make an offer or that it does not intend to make an offer. The deadline can be extended by the Pendragon board again.

Pendragon said "there can be no certainty that a firm offer will be made".

However, a report from the Sunday Telegraph suggested Pendragon's board indicated to Anders Hedin, the owner of Hedin Modility Group, that they will recommend the 29 pence a share deal to shareholders.

Citing "City sources"', the newspaper said the board's recommendation could be announced as early as Monday.

The Telegraph said separate City sources indicated that Hedin could face competition from Constellation Automotive, the group behind Webuyanycar.

A rival bid would likely have to be around 35 pence a share, the newspaper said. However, a Constellation deal could attract the interest of competition regulators, as it would leave it with around 20% of the UK car dealership market, the Telegraph noted.

Pendragon received the offer from Hedin for its entire issued share capital back in September.

Under the terms of the deal, announced in September, Hedin - the company's largest shareholder - offered a price of 29 pence per share, a valuation of GBP405.1 million for the entire company.

Hedin is a Swedish privately-owned investment company investing in businesses mainly related to the vehicle industry.

By Chris Dorrell; chrisdorrell@alliancenews.com

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