Rival bid for Rover

BMW are to be presented with a rival bid to buy out the Rover car group, it has emerged.

According to a newspaper report, senior industry sources have said a consortium headed by former chief executive of the Rover group, John Towers, is to make an alternative bid for the company.

He is said to have Government backing and is committed to mass car production at the troubled Longbridge plant.

At present, BMW have said they intend to sell Longbridge to the venture capitalists Alchemy Partners who have said they will shed jobs and concentrate on supplying niche markets with upmarket MG cars.

However, the Government and unions have always insisted it was not a "done deal" and other potential buyers could come forward.

A spokesman for the Department of Trade and Industry told the paper: "The Government made it clear from the outset that if there has to be a new owner for Rover, we would prefer it to be one committed to high-volume car manufacturing."

If no counter-bid is accepted by BMW unions expect the Alchemy deal to be completed by the beginning of May.

GMB general secretary John Edmonds said today: "I think it's an excellent idea. I hope that John Towers is successful.

"We have to be realistic about it. The chances are not wonderfully good at the moment, because of the difficulties of the pound and many other things," he told BBC Radio 4's Today programme.

Mr Edmonds added: "BMW have left Longbridge in a mess and someone has to pick up the pieces. But looking on the other side, the Alchemy bid for Longbridge is awful.

"Alchemy has no long term interest in car production, they are looking to asset strip. So any alternative to Alchemy has to be looked at very seriously."

A Downing Street spokesman said they were aware of the "possibility" of a rival bid for Rover being put to BMW.

A spokesman made clear the Government would welcome any bid "which favoured high volume car production" at the Longbridge plant but said it was not up to ministers to support one bid over another.

Asked about possible Government support for the new bid being headed by former chief executive of the Rover group, John Towers, the spokesman said any request would have to be made through the normal process.

Trade Secretary Stephen Byers, who knows Mr Towers, briefed the Cabinet today on the work of the Government task force set up to deal with the consequences of the Longbridge sale.

Mr Byers is expected to visit the Midlands next week, he added.