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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.
"SAIC has today announced that it has submitted an offer to PricewaterhouseCoopers (PwC), the joint administrators of MG Rover Group Ltd. and Powertrain Ltd., for the combined assets of the two companies," it said late Monday. PwC would not confirm the offer when contacted.
The bid was believed to be worth 60 million pounds (US$105 million) and would be funded by SAIC.
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 rival Nanjing Automobile and James' consortium.
"We believe that our proposal represents a compelling proposition for the creditors of the two companies," SAIC added, referring to MG Rover and its engine firm Powertrain.
"The offer envisages a strategic collaboration with Magma Holdings Ltd., 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 Europe, and Edward Sabisky, a former General Motors executive.
Meanwhile, David James, a British company recovery specialist, was trying to raise money to back up his bid.
Barrie Wills, spokesman for his bid-- entitled Project Kimber -- said: "This is the last chance to save Britain's largest independent carmaker from falling into overseas ownership."
"It is a credible, fully funded bid with a strong management team that has varied and extensive expertise working in the motor industry."
He also spoke of a "pragmatic and realistic business plan that will see the brand develop over the coming years and job development at Longbridge." The initiative has been mainly centered on the MG-TF sports car.
Century-old MG Rover, which produced the Mini and Jaguar, was forced to axe 6,000 workers in April when it closed the Longbridge plant in Birmingham after a failed tie-up with SAIC helped push it into bankruptcy.
SAIC planned to employ more than 3,000 workers at MG Rover if its bid for the failed Birmingham carmaker was successful, the Financial Times reported.
The newspaper said SAIC planned to set up a large engineering and design center at the Longbridge factory.
It is understood the plans foresee an output of more than 100,000 cars by 2009, close to the 112,000 sales Rover achieved last year, the paper said.
(Shenzhen Daily July 20, 2005)
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