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SAIC makes formal offer to buy MG Rover
(Agencies)
Updated: 2005-07-20 11:50
LONDON - Shanghai Automotive Industry Corp (SAIC) said it had submitted
a formal offer for the assets of MG Rover, breathing new life into its collapsed
bid for the failed British automaker.
MG Rover sign at
the Longbridge plant in England. Shanghai Automotive Industry Corp (SAIC)
said it had submitted a formal offer for the assets of MG Rover, breathing
new life into its collapsed bid for the failed British automaker.
[AFP] | "SAIC Motor has today announced that it
has submitted an offer to PricewaterhouseCoopers (PwC), the joint administrators
of MG Rover Group Limited and Powertrain Limited, for the combined assets of the
two companies," it said on Monday. PwC would not confirm the offer when
contacted.
The bid was believed to be worth around 60 million pounds (US$105 million)
and would be fully funded by the Chinese carmaker.
In response, businessman David James announced he had put together a
British-backed bid to prevent MG Rover from falling into Chinese hands.
Three possible buyers are in talks with administrators in the race for MG
Rover -- thought to be SAIC, its mainland rival Nanjing Automobile and James'
consortium.
"SAIC believes that (its) proposal represents a compelling proposition for
the creditors of the two companies" comprising of MG Rover and its engine firm
Powertrain, SAIC added.
"The offer envisages a strategic collaboration with Magma Holdings Limited,
which will focus on the development and distribution of new models and a
resumption of car production at Longbridge."
Last week SAIC signed a letter of intent for a strategic collaboration with
bid vehicle Magma, founded by Martin Leach, ex-head of Ford of Europe, and
Edward Sabisky, a former General Motors executive.
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