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Fw: More thoughts about MG-Rover

To: "Healey List" <healeys@autox.team.net>
Subject: Fw: More thoughts about MG-Rover
From: "David Ward" <david@bighealey.ltd.uk>
Date: Thu, 21 Apr 2005 22:17:41 +0100
This gentlemen is taken directly from a UK chat
site.....................AMEN.
Regards.
David.

----- Original Message ----- 
From: "Michael Kilpatrick" <michael@mtkilpatrick.SPAMWITHEGGSfsnet.co.uk>
Newsgroups: uk.rec.cars.classic
Sent: Friday, April 15, 2005 10:52 PM
Subject: More thoughts about MG-Rover


 The more I try and understand the details of the failed SAIC deals and
 the collapse of MG-Rover, the more I get confused. Does anybody here
 know in more detail exactly what properties/rights SAIC have already
 obtained?

 It has been said that SAIC had already bought the rights to produce the
 25 and 75 and the K-series engine. I've read in the news that SAIC have
 already terminated the royalty agreement with Powertrain to produce the
 K-series. Unfortunately I couldn't find any more information. Does this
 mean that MG-Rover (if they had survived) no longer actually have any
 right to produce the 25, 75 and K-series?

 If that's the case, does that mean the Phoenix Four effectively sold
 many of the intellectual properties of the MG-Rover group *before*
 securing any deal for SAIC to take over the entire group?

 If that's the case, doesn't it mean that either:

 a) Phoenix were utterly incompetent, leaving the company with absolutely
 no bargaining position whatsoever after selling the rights to the
 aforementioned products? Why the hell should SAIC want anything to do
 with the company after paying #67m for the product rights they wanted?

 b) Phoenix knew exactly what they were doing: getting some money for
 something they knew SAIC wanted, knowing that MG-Rover was near to
 collapse, and that the best option for themselves was to let Rover go
 bankrupt with very few assets left, thus forcing it into administration
 leaving Phoenix with no liabilities?

 Michael




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