The AA has given suitors an extra month to complete a take-private swoop, the breakdown firm said on Tuesday.

TowerBrook and Warberg Pincus, which have joined forces and are the last remaining bidder, have until Oct 27 to make an offer.

The extension follows a flurry of activity last week as suitors dropped out of the running.

The AA effectively put itself up for sale last month after receiving three approaches from private equity firms.

Apollo, the Wall Street buyout giant, is understood to remain interested in refinancing some of the former FTSE 250 firm’s roughly £2.6bn of debt.

Last week, the Financial Conduct Authority announced a clampdown on the insurance sector, over so-called “price-walking” - where new customers are offered heavily discounted premiums, and subsequently increased in the following year when renewed.

The AA boasts a burgeoning insurance arm, which was seen as ripe for growth when bidding started. The prospect of tighter regulation is said to have spooked some suitors.  

However, breakdown cover was not covered in the proposed changes as had been feared.

The deadline extension - the second so far - came as AA boss Simon Breakwell hailed a “remarkably strong performance” during the six months to July given the impact of Covid.

"In a time of national crisis, I am very proud that our employees exemplified the true culture of the AA by going above and beyond for our members,” he said.

Pre-tax profit fell 38pc to £26m on revenues 2.6pc lower than the same period last year at £478m. Free cash flow more than halved to £21m.

AA shares, which have been volatile in recent weeks, were largely unmoved in morning trade at 29.2p.