UPDATE 1-Hedin, PAG International to drop bid for British car dealer Pendragon

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Dow Jones Industrial Average DJI	48114.26	-0.62%
Penske Automotive Group, Inc. PAG	167.98 167.98	+0.04% 0.00% Pre
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NASDAQ IXIC	23111.46	+0.23%

Recasts paragraph 1, adds background on previous offers in paragraphs 2,4; share prices in paragraph 3

Oct 4 (Reuters) - Hedin Mobility Group and U.S.-based PAG International PAG.N said on Wednesday they will not make an offer for British automotive retailer Pendragon PDG.L, just a fortnight after sweetening their takeover proposal.

Hedin, which holds a 27.6% stake in Pendragon and is the top shareholder, and PAG had sweetened a proposal to buy the company for 32 pence per share last month. The London-listed retailer had earlier rejected a proposal of 28 pence per share.

Shares of Pendragon were down 6.2% at 33 pence at 1328 GMT.

The company announced last week that it is considering an unsolicited proposal from AutoNation AN.N for about 447 million pounds ($544.2 million) in cash.

Pendragon is currently amid a sale of its UK motor and leasing businesses to Lithia Motors LAD.N for 397 million pounds.

(Reporting by Eva Mathews in Bengaluru; Editing by Shweta Agarwal and Sherry Jacob-Phillips)

((Eva.Mathews@thomsonreuters.com;))

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