Lookers, the car dealership fighting a £259m bid from rival Pendragon, warned that more than 25% of its sales were at risk if the bid succeeded.

It has been told in writing by three carmakers, representing just over 18% of its sales, that they would discontinue all or part of their business if the deal went through. Lookers did not name the carmakers, but they are believed to be Bentley, Vauxhall, and Volkswagen.

Lookers said the same "change of control" provisions existed in other franchise contracts, meaning that sales of some £326m were at risk. It urged shareholders not to act on the offer.