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Rover today

To: triumphs@autox.team.net
Subject: Rover today
From: GuyotLeonF@aol.com
Date: Sat, 15 Apr 2000 10:47:03 EDT
The boss of Rover take-over bidder Alchemy Partners today warned that a rival 
offer for Rover is following a "doomed" strategy of wanting to retain mass 
car production at Longbridge. 

Alchemy Partners chief Jon Moulton dismissed the new offer, by a consortium 
headed by ex-Rover boss John Towers, as unions urged BMW to support the rival 
bid. 

Trade and Industry Secretary Stephen Byers, meanwhile, was preparing to 
discuss the crisis at a meeting in the West Midlands. 

Mr Moulton dismissed the Towers' bid as not being a real competitor, saying 
there was "no real sign" that it had any finance behind it. "It seems to be 
something done with mirrors," he told the BBC Radio 4 Today programme. 

"We think that there is a grave danger that a non-viable car company will be 
re-created, there will be a short term increased employment followed by 
approximately a nil employment. 

"We think the way we are going gives an opportunity for a growing, viable MG 
car company." 

But being a small mass-producer of cars was "a doomed strategy", he said. 

Rover's German owner BMW has confirmed it had received a letter "containing a 
proposal for the takeover of Rover from a consortium that includes John 
Towers". 

BMW said it was now examining the letter and was "not in a position" to make 
any further comment. 

The move by Mr Towers, who was chief executive at Rover, means BMW must now 
consider this new offer against the rival bid from Alchemy Partners. 

While Alchemy's plans will involve heavy job losses and a slimming down of 
production, Mr Towers, who is currently chief executive of components company 
Concentric, is understood to have outlined a scheme to keep Rover. 

Roger Lyons, general secretary of the Manufacturing, Science and Finance 
union, said: "We are pleased that this bid has been tabled and we hope it 
will be considered as a serious alternative." 

The Towers bid, called the Phoenix Project, could save many of the jobs under 
threat from the Alchemy proposal, particularly at Rover's Longbridge plant in 
Birmingham. 

Alchemy wants to cut back on Rover 25, 45 and 75 production while 
concentrating more on the production of MG sports cars. 

The Phoenix plan will need strong financial backing as Alchemy calculates 
that Longbridge could make losses of £2.1 billion this year. 







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