Ecclestone fuels City fears on F1 flotation

Chris Godsmark

Progress towards the planned pounds 2bn flotation of the Formula One grand prix empire is attracting growing concern in the City after the apparent reluctance of Bernie Ecclestone, owner of the promotional operation, to disclose details of the business.

In an unusual move, Mr Ecclestone is understood to have ordered that circulation of research notes written by the select group of City analysts invited to follow the flotation is restricted to a small number of big institutional investors. It means the first chance to study details of the businesses, to be grouped into a Formula One holding company, will be when the formal prospectus document is published by Salomon Brothers, the US investment bank managing the flotation. In most flotations these research notes are circulated widely, giving an early opportunity to value a company prior to the publication of the prospectus itself.

Separately yesterday Christian Purslow of Salomon Brothers, which is handling the offer, said he could not confirm whether the float would take place at all. "We are just working away on this and I cannot say whether there will or won't be a flotation, though we expect to make an announcement in the near future." Mr Purslow said the "tentative" timetable agreed with Mr Ecclestone, thought to be to float the business at the British Grand Prix on 13 July, had not changed.

Salomon Brothers have already raised eyebrows in some City circles by effectively excluding analysts from some well-known broking houses from progress briefings on the flotations. Those analysts invited into the "inner circle" to meet Mr Ecclestone are from securities houses and merchant banks which are also sub-underwriters to the float itself. A similar procedure was used during the flotation of British Sky Broadcasting.

Details of Formula One revenues have been closely awaited in the City and in motor racing circles, because most of his deals to sell exclusive television rights for grand prix races have until now been a closely guarded secret. Intensive negotations have continued between Salomon Brothers, Mr Ecclestone and the Stock Exchange over how much or how little of this information is laid out in the prospectus. At issue is how much each cash television company pays to broadcast races, facts which would be a pre- requisite for an accurate valuation of the business before a flotation.

The latest obstacle in the way of the increasingly complex public offering came as the leading teams have continued to demand a more substantial stake in the floated company. Salomon Brothers' most recent plan was to sell around 50 per cent to public, with Mr Ecclestone keeping a 30 per cent stake and 10 per cent each going to the teams and to the sport's governing body.

News
people
Arts and Entertainment
Game Of Thrones
Uh-oh, winter is coming. Ouch, my eyes! Ygritte’s a goner. Lysa’s a goner. Tywin’s a goner. Look, a dragon
tvSpoiler warning: The British actor says viewers have 'not seen the last' of his character
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave long-running series
Sport
The Etihad Stadium, home of Manchester City
premier league

The Independent's live blog of today's Premier League action

PROMOTED VIDEO
News
Polly Borgen at the Tribeca Film Festival in 2012
peopleThe Emmy award-winner starred in Cape Fear, the Sopranos and Desperate House Wives
Sport
FootballGerman sparks three goals in four minutes at favourite No 10 role
News
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Arts and Entertainment
tvReview: 'Time Heist' sees a darker side to Peter Capaldi's Doctor
Voices
Holly's review of Peterborough's Pizza Express quickly went viral on social media
voices
News
ebooksAn unforgettable anthology of contemporary reportage
News
Dennis Rodman has confirmed he is not going to the Middle East to 'talk to with the leaders of Isis' as claimed in a recent satirical report
people
News
people'Bring It On' actress says her legal team will combat the 'vultures'
Sport
Radamel Falcao was forced to withdraw from the World Cup after undergoing surgery
premier leagueExclusive: Reds have agreement with Monaco
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
Sport
A long jumper competes in the 80-to-84-year-old age division at the 2007 World Masters Championships
athletics
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam