LONDON -- Talks toward a takeover by UK car dealership Pendragon of rival Reg Vardy have advanced, although the two sides have yet to officially agree on the terms of a 420 million pound ($719.5 million) deal, a source familiar with the situation said on Monday.
"It is fair to say that the talks have advanced. Negotiations are a long way down the line," the source told Reuters.
The source said 750 pence per share remained a "pretty firm" offer price but the two sides had not yet officially agreed on the terms of the bid.
An announcement is not imminent, the source added. The Sunday Telegraph newspaper said on Nov. 20 a recommended offer was expected within the next few days after both sides agreed the terms of the bid.
A spokesman for Pendragon declined to comment on the progress of talks. Reg Vardy was not immediately available for comment.
Vardy, whose franchises include BMW, Citroen and Fiat, said last week it was in talks with Pendragon on an unsolicited 750p-per-share offer.
A successful deal for Reg Vardy would make it Pendragon's second in as many years and comes at a time that sales of new cars are declining in a gloomy retail environment.
Pendragon, Britain's largest car dealer, snapped up CD Bramall in 2003, nearly doubling the size of its business and strengthening its position with premium brands such as Jaguar, Land Rover, BMW and Mercedes.