Phoenix approaches GM in search for Rover bid finance
The Phoenix consortium is believed to have approached General Motors, the owner of Vauxhall, in an attempt to raise money to fund its rescue bid for Rover.
The approach is thought to have been made to GM's finance arm, which is separate from the group's main car-making operations.
Phoenix, which is led by the former Rover chief executive John Towers, is thought to need at least £700m in finance to make its bid viable and proceed with plans to maintain volume car production at the Longbridge plant.
Burdale Financial, the UK arm of First Union Bank of North Carolina, yesterday confirmed it had offered Phoenix £200m of working capital to help fund its bid. The offer is conditional on due diligence and legal conditions being met. Phoenix will have to pay interest at 2 per cent above inter-bank lending rates.
But the consortium is thought to need an additional £500m to finance the Rover dealer network and cover buyback guarantees on lease-financed cars.
Mr Towers and BMW executives spent another day yesterday locked in talks at the offices of the German car maker's London solicitors, Norton Rose. An announcement about whether BMW will accept the Phoenix bid could come as early as today or tomorrow.
Amid indications that BMW was looking more favourably on the Phoenix bid, a spokesman for the consortium said: "Clearly the fact that negotiations are continuing to take place is a positive rather than a negative sign." Analysts remain sceptical, however, about whether the Phoenix plan is viable given Rover's losses, currently running at £2m a day.
BMW has to satisfy itself that the Phoenix proposal can guarantee Rover's future for at least two years. If it were to close within that period, BMW's potential liability could be £2bn.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...