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April 10, 2005

Those Inscrutable Chinese.

Ha, Ha, Ha, oooh, dear, this Rover story just gets better and better. John Tower and the Phoenix guys have been comprehensively outmanouvered by SAIC.

The Chinese company that last week spurned a life-saving deal with insolvent MG Rover has an effective veto over the sale of the company's assets by the administrators.

Shanghai Automotive Industry Corporation (SAIC) paid just £67m in the autumn for the intellectual property rights to Rover's Powertrain engine and transmission systems and the firm's flagship R75 saloon/estate and R25 car.

Sources close to SAIC confirmed that should any other company want to buy any of these assets, they could be prevented from exploiting them. This effectively means that for only £67m the corporation has got control of all the assets it wants from Rover, rendering them virtually worthless to anyone else. It could therefore buy them at a price of its choosing and ship them out to China.

A source close to SAIC told The Observer: 'Nobody else can buy it or make it. This applies to Powertrain, the Rover 25 and the Rover 75.' Asked what SAIC's next move would be, the source said: 'We shall see what happens.' He admitted that if the events of the past six months had been a game of cards, the Chinese would have played a near perfect hand.

That’s it, game over. The assets of the business cannot be bought or used by anyone else without paying the Chinese off. All that’s left is the value of the land the factory sits upon. The only possible buyer for it as a going concern, stripped of its debts and thus possibly viable, is SAIC. Now then who was it who said that this would be a decent method of negotiation? Why, I do think it might possibly have been me.

April 10, 2005 in Current Affairs | Permalink

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» Daily linklets 11th April from Simon World
This is a daily collection of links, some with commentary, to news stories and interesting blog posts. It will be updated throughout the day with a new timestamp for the updates. Scroll down for today's other posts. In 1962 China and India went to war ... [Read More]

Tracked on Apr 11, 2005 7:04:51 AM

» Daily linklets 11th April from Simon World
This is a daily collection of links, some with commentary, to news stories and interesting blog posts. It will be updated throughout the day with a new timestamp for the updates. Scroll down for today's other posts. In 1962 China and India went to war ... [Read More]

Tracked on Apr 11, 2005 10:42:31 AM

Comments

HMG has the Phoenix Four in its sights, but shouldn't that be the Phoenix Five? What about the Chap Who Really Is Responsibe, Mr Bozo Byers?
http://www.epolitix.com/EN/MPWebsites/Stephen+Byers/home.htm

Posted by: dearieme | Apr 10, 2005 4:43:01 PM