A NORTH-EAST car dealer is believed to have placed a bid to take over one of its competitors.
Reports yesterday suggested Reg Vardy, which has dealerships throughout the region, had placed a bid for the Ryland Group, one of its smaller rivals.
Reg Vardy has 73 dealerships across the North-East, Scotland and the Midlands.
Ryland operates 40 car dealerships, mainly in the West Midlands, northern England and south Wales, including BMW, Mercedes, and Jaguar/ Volvo franchises.
Last week the Ryland Group received a takeover bid from Guinness Peat, after its ownership of Ryland reached 30 per cent - the threshold that triggers a mandatory offer for the entire share capital. Ryland rejected the offer from Guinness Peat.
Guinness Peat offered 120p a share, valuing Ryland at £35.6m, but it is understood that Reg Vardy has placed a higher bid.
The Ryland Group reported pre-tax profits of £1.11m on a turnover of £642.3m in the year to December 31.
If the buyout goes ahead Reg Vardy will add to dealerships which include Ford, Vauxhall and Renault, as well as Mercedes and BMW.
In the year to April 30, Reg Vardy reported pre-tax profits of £24.3m on a turnover of £1.3bn.
Despite the reports, both companies refused to comment on the speculation
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