German car giant BMW today dashed hopes that a rival consortium trying to buy
Rover was making progress when it told workers that the bid was "still not
financially backed".
The firm said that the consortium, led by former Rover executive John Towers,
had not provided the financial backing being sought by BMW.
Officials said that this did "not constitute a basis for entering
negotiations" with the Towers team.
A statement issued by BMW from its Munich headquarters said: "The
negotiations with Alchemy Partners will continue in a straight forward
manner." =
Alchemy, the venture capitalist firm bidding to buy most of Rover, had
earlier expressed optimism that a deal could be reached within days.
But supporters of the Towers consortium, known as Phoenix, believed the rival
bid was treated more seriously and that a final decision on the sale of Rover
could be delayed until next week.
The new BMW statement appeared to be a setback for the Towers consortium,
which has the backing of unions.
It was issued shortly after a delegation of workers from the huge Longbridge
factory in Birmingham travelled to Munich to present a petition to BMW urging
it to give the Towers team more time to put together its bid.
The BMW statement was headed: Phoenix Bid still not financially backed, and
read: "On the occasion of a visit, a delegation of the British unions has
turned over a petition demanding to sincerely consider the bid of the
consortium = The BMW statement was headed: Phoenix Bid still not financially
backed, and read: "On the occasion of a visit, a delegation of the British
unions has turned over a petition demanding to sincerely consider the bid of
the consortium of the former Rover head John Towers.
"During this visit BMW made clear that despite a demand of BMW the financial
backing by the consortium has not been provided yet.
"On the occasion of the visit of the unions, BMW has once again repeated this
fact and pointed out that this does not constitute a basis for entering
negotiations with the Phoenix consortium.
"The negotiations with Alchemy Partners will continue in a straight forward
manner."
Union leaders reacted with dismay to the BMW statement.
John Edmonds, general secretary of the GMB, said: "It has become quite clear
that BMW have never had any real intention of considering the Phoenix bid.
"Their only desire has been to cut and run. In doing so they have abandoned
thousands of skilled and dedicated workers to the tender mercies of the
Alchemy asset strippers."
Roger Lyons, general secretary of the Manufacturing Science and Finance
union, said: "BMW have never given Phoenix a level playing field to put its
business case forward.
"We call on BMW to extend tomorrow's deadline to allow Phoenix to put its
case, which in our view is better for the British economy, the West Midlands
and Rover workers."
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