THE UK's largest corporately-owned bodyshop network is fighting off a hostile take-over bid from two of its major shareholders.

Nationwide Accident Repair Services operates 65 crash repair centres alongside its accident management arm Nationwide Network Services that counts Consignia and BAe Systems among its clients.

It claims the bid offer of 79p per share by Guinness Peat and JO Hambro - that together already own 37% of the business - undervalues the company and 'implies a price for the core business of just 10.5p per share.'

Adrian Dunleavy, chief executive of Nationwide Accident Repair Services, said: 'We see both the vehicle repair and accident management businesses as having fantastic growth opportunities.'

He cited statistics from Market Facts and Business Information that the average value of vehicle repairs will rise by 29% between 2000 and 2006 as labour rates and parts prices increase to take account of more expensive vehicle technology. In addition, the bodyshop market is contracting, strengthening the position of Nationwide.

'We have a strong cash position and balance sheet, and we see strong opportunities for growth with acquisition,' said Dunleavy.

He added that problems at eight bodyshops that between them lost £2.8 million last year were being addressed, with two closed, three under new management, one relocated and two being downsized.

In addition, the company has switched from outright purchasing to leasing its 2,800-strong courtesy car fleet to improve its cash flow and reduce its risk exposure.