Inchcape in takeover driving seat

CAR dealer Inchcape has amassed a £160m cash pile and is hitting the takeover trail. Chief executive Peter Johnson wants to increase the company's 70 BMW, Mercedes and Volkswagen dealerships in the UK.

Possible targets include HR Owen, Lookers and European Motors, which would expand Inchcape's network into the north of England and Scotland.

'We are looking at everything,' said Johnson. Inchcape's half-year profits accelerated 31% to £83.4m, helped by a buoyant British market and bumper sales in Singapore.

Inchcape, up 47p at £16.72, hiked its six-month dividend by 25% to 15p a share.

The company rebuffed suggestions that its UK business will be damaged by interest rate rises.