Tuesday, April 29, 2008
Pendragon welcomes billionaire investor
The revelation that billionaire investor Jack Petchey has built up a 13 per cent stake in Pendragon is unlikely to signal a major shake-up of the UK’s largest dealer group, according to a financial analyst.
Mike Allen, from stockbroker Panmure Gordon, said Petchey was likely to have considered Pendragon's shares undervalued and to have increased his stake in the group as a long term investment.
Pendragon's market value has dropped by 75 per cent in the last year.
Allen described Petchey as an “activist shareholder” who would look at Pendragon as a “value opportunity”.
“He has a longer term investment horizon than other investors,” said Allen. “Most will not want to get caught in another downgrade.”
DATED: 29.04.08
FEED: MT
Mike Allen, from stockbroker Panmure Gordon, said Petchey was likely to have considered Pendragon's shares undervalued and to have increased his stake in the group as a long term investment.
Pendragon's market value has dropped by 75 per cent in the last year.
Allen described Petchey as an “activist shareholder” who would look at Pendragon as a “value opportunity”.
“He has a longer term investment horizon than other investors,” said Allen. “Most will not want to get caught in another downgrade.”
DATED: 29.04.08
FEED: MT
