Volkswagen AG (XTRA:VOW3) is in advanced talks with the hedge fund owners of Europcar Mobility Group S.A. (ENXTPA:EUCAR) about buying the French car rental company after a first bid from the German automaker was rejected in June, according to two sources close to the matter. Volkswagen, which has owned Europcar in the past, is exploring an approach at about 0.50 euros per share, following its last offer at 0.44 euros, which would value Europcar's equity at close to 2.5 billion euros ($3 billion), the sources said. The tie-up could be announced as soon as July 28, 2021 if talks about an agreement in principal are successful, although no deal has been reached yet, the sources added.

They said the price could still evolve or include sweetener clauses if acceptance levels reach a certain threshold. One of the sources said the companies' boards were due to meet separately on July 28, 2021. Volkswagen declined to comment, as did Anchorage, the lead fund that took control of Europcar last year along with other investment firms.