Car dealer Reg Vardy looked to be on the auctioneer's block after revealing it was in talks with two more potential buyers.
Shares in the company, which has a number of outlets in the West Midlands, hit another all-time high yesterday.
Both of the two new potential bidders have offered more than the £422 million previously proposed by rival dealership Pendragon, Sunderland-based Vardy said.
Early trading saw shares in Reg Vardy rise by five per cent to a new all-time high of 772p as investors welcomed the prospect of a possible bidding war and looked to a price higher than the 750p a share proposed by Pendragon two weeks ago.
Shares in Nottinghamshire-based Pendragon, which has 236 franchises in the UK, slumped though as the firm faced having to raise its bid to clinch a deal.
The identities of the two new parties in the bid frame have not been revealed, but one is believed to be Inchcape.
Analysts KBC Peel Hunt said if Inchcape was indeed in the hunt, the value of Pendragon's 750p offer would be reduced.
"If this gets into a bidding war Inchcape has much deeper pockets than Pendragon," KBC added.