Manganese deal with Geely off

Geely Auto has withdrawn its £14m offer to buy a controlling stake in Manganese Bronze, the maker of London's black cabs.

Manganese asked its Chinese partner in March for a cash injection that would have increased Geely's stake from 20 per cent to 52 per cent. The company has been in the red because of falling demand for its taxis and tough new competition. Manganese said the collapse of the deal should not affect its joint venture with Geely or its international expansion plans.

Geely backed out after finalising its purchase of Swedish carmaker Volvo, and after Manganese shares fell far below the 70p level of the planned placing. They were 36.5p last night.

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