European Motor Holdings Plc (EMH), the UK-listed car retailer, is undertaking a strategic review which analysts predict could lead to a sale.

The company has appointed US investment bank Goldman Sachs to carry out the review, the results of which it says will be announced in due course. 

EMH was subject to takeover rumours back in March when traders tipped City investor Jack Petchey as a potential buyer of the business. Petchey had a 15% stake in EMH as well as a sizeable share of rival car dealership Reg Vardy, a subsidiary of Pendragon Cars.

Analysts have named Pendragon as a strong candidate to buy the business if the current review leads to a sale. Lookers plc has also been mentioned as a likely contender. 

Interim results for the six months to 31 August 2006 announced today showed increased revenues for EMH, with profit before tax up 42% to £10.2m and turnover up 27% to £428m.