Due to the size and complexity of the Group’s operations our negotiations with potential buyers are proving time consuming.”

Which will be reflected in PWC's bill. The total will be the figure which looks like a telephone number.....

 

Which will be reflected in PWC's bill. The total will be the figure which looks like a telephone number.....

....which may prove money well spent if it means MG-R car production is restarted at Longbridge

 

Light at the end of the tunnel at last! If we like the outcome or not at least we will know. In my opinion any deal which would start production again at Longbridge is welcome, I would obviously prefer it to be from the UK but jobs are jobs whoever are paying the wages.

Ken

 

....which may prove money well spent if it means MG-R car production is restarted at Longbridge

Agreed, its PwC's job to make sure a well financed bid with experiance and attainable targets eventually has the desitny of MG- Rover.

 

Who would have thought, back in the dark days of April, that there would be three bidders fighting over the whole group. And all three wanting to "continue at least some car production in the UK "


For a while it looked as though the hardware would be sold for scrap, or all shipped out to China... :sad2:

 

Great something positive which is not just hearsay...speculation...or counter espionage!

I live in hope production resumes

 

As long as its guarenteed production, not just 12 months and then for them to turn round and say - oh well, its not economical to build them here, we'll build them in China instead. :irked:

 

As long as its guarenteed production, not just 12 months and then for them to turn round and say - oh well, its not economical to build them here, we'll build them in China instead. :irked:

Right on - in a couple of years, I want to be at my MGR dealer looking to buy a Rover 45, not an Ngwaaah-Wee-Ying-Tong. Is there any liklihood of guarantees about maintaining production here being written into contracts, or is that pushing it too far?

 

Yeah, that's my reservation, too Steve...

 

Tony Lomas, joint administrator and partner at PricewaterhouseCoopers, said:

One of these parties is from the UK and the other two are from overseas.

NAC is definitely from overseas.
SAIC from overseas have reportedly said they're not bidding for all of MGRs assets.
Is the Magma bid from overseas as it might be a SAIC/Magma bid?
Is the British party Magma?
Or is the British party Martyn Moseley as reported in todays Daily Mail?

 

Just heard it announced on BBC Radio WM. Sounds Promising. at least people want to carry on the company. The timing coincides well with the Auto Express article on the new 75/45.

-Rob-

 

Yeah, that's my reservation, too Steve...

sadly mine to ,i think its pretty obvious if production does restart it will only be a matter of time that "due to high costs of producing in the uk blah blah " production is moving to china ....

 

"We are locked in detailed discussions with three separate parties, each of which is at a different stage of completing its negotiations. One of these parties is from the UK.. "

Really happy to hear they are three, and one is from U.K. !!


"we are hopeful of concluding a deal in the near future"

Grunt! :irked: I really hope it is near near near, otherwise I'll get really sick.


"Due to the size and complexity of the Group’s operations our negotiations with potential buyers are proving time consuming"

And the PwC bill is increasing... BTW, I know it's a complex deal and it needs time to get sorted, BUT... have a look to what I found out, while I was looking for an announcement from PwC (this time Steve was faster than me ):


From: Accountancy Age - July 12, 2005
--------------------------------------
PwC pays US government $42m
after being accused of overcharging for travel expenses

PwC has agreed to pay the US Department of Justice $42m after it was accused of overcharging the federal government for travel expenses.

The DoJ said PwC knowingly failed to disclose that it had been receiving travel-related rebates from credit card companies, airlines, hotels and other service providers while still claiming expenses from the US government.

PwC said it was pleased to resolve the matter and had changed the policy that gave rise to the matter in 2001 - before it was aware of a government investigation. It admitted no wrongdoing.
---------------------------------------


And...


From: WebCPA
--------------
PwC to Pay $41M in Travel-Billing Suit

New York (July 13, 2005) - PricewaterhouseCoopers will pay $41.9 million in civil penalties to settle claims that it over-billed the government for travel-related expenses.

The U.S. Justice Department announced Monday that the settlement involves bills paid directly by the Defense Department and other federal agencies that used PwC, as well as inflated bills passed on to the government by contractors working on federal projects.

The agreement follows a federal False Claims Act lawsuit that was filed in 2001, which prompted an investigation by the U.S. Attorney's Office. A company spokesman told Reuters that PwC had already changed the policy before becoming aware of the government investigation.

PricewaterhouseCoopers previously paid $54.5 million to settle its share of a class-action lawsuit over travel-billing issues in another case filed in 2001 in state court in Texarkana, Ark., which accused the firm and others of over-billing clients by charging them the full face amount of travel costs, while receiving back-end rebates from vendors
---------------------------------------
(here is the Link: http://www.webcpa.com/article.cfm?articleid=13760&pg=news)

 

Wasn't a plan mentioned to build 25/45 in China to be finished off at longbridge and build the higeher end platforms at Longbridge?

-Rob-

 

If it's a British company producing products in China for sale in Europe, then that's a better alternative than a Chinese company walking off with our car industry and importing more foreign cars into the UK.

Nanjing appear to be the only people who want to do the latter. The others probaly need China to make components, lend money, etc. not remove MGR and close LB.

 

Originally Posted by Mauri
PwC pays US government $42m

PwC to Pay $41M in Travel-Billing Suit

That's precisely why the Govt. announced that there would be an enquiry into the way in which PwC was handling the administration of MGR a little while ago. A shot across the bows perhaps.

 

That's precisely why the Govt. announced that there would be an enquiry into the way in which PwC was handling the administration of MGR a little while ago. A shot across the bows perhaps.

And that's precisely why the German Govt. appointed one month ago an expert lawyer to the MG Rover Germany, to have a look at the way PwC was managing the Creditor issue in Germany. And.. only after that move, the PwC in Germany changed the proposal to the german Creditors!

And, in Italy, about one month ago, a group of MGR employees has been forced to address to the lawyers, after the PwC proposal to pay them only 50% of part of the past liabilities.

That well respected PwC, eh?

 

Originally Posted by slammer
The Daily Mail today (p65) reports that Martyn Moseley is back in the running with lots of money and the backing of 400 former MGR workers mainly from product development. He reckons his 'renewed' bid is the only serious one and he has been approached by all the major bidders (bar SAIC) for his support. He's meeting bankers tomorrow.

Well SAIC wouldn't would they if they aren't bidding...Perhaps what's going on now isn't negotiations to select a final winner, it's to get everyone involved to put up the money togther to support THE BID and re-boot MGR.
It's just deciding how big a chunk of the action they each end up with?

 

NAC is definitely from overseas.
SAIC from overseas have reportedly said they're not bidding for all of MGRs assets.
Is the Magma bid from overseas as it might be a SAIC/Magma bid?
Is the British party Magma?
Or is the British party Martyn Moseley as reported in todays Daily Mail?

Somebody posted on a thread yesterday that Ma8ma were Welsh.I seem to think they are backed by US money though. They are also reported to be bidding in conjunction with SAIC.

 

NAC is definitely from overseas.
SAIC from overseas have reportedly said they're not bidding for all of MGRs assets.
Is the Magma bid from overseas as it might be a SAIC/Magma bid?
Is the British party Magma?
Or is the British party Martyn Moseley as reported in todays Daily Mail?

From: Industry News
--------------------
PwC administrators confirm detailed talks with three MG Rover bidders
14th July 2005

Tony Lomas, joint administrator and partner at PricewaterhouseCoopers, said today, 14 July: “We are locked in detailed discussions with three separate parties... blah..blah..blah..

While Mr Lomas did not reveal the names of the three parties, media reports this week suggest the two foreign bidders are both Chinese - SAIC, earlier the projected joint venture partner of MG Rover before its insolvency, and Nanjing Automobile.

The UK bidder reported this week to be in the most advanced stage of readiness to bid is a group led by 'company doctor' David James.
-------------------------------

Here is the link: http://www.autoindustry.co.uk/news/industry_news/14-07-05_11

 

Hi,


I think the way to try to predict whether after a production is restarted it would then be shortly moved to China is to ask a different question:

Question:
Who is saying that they will keep production in the UK just because the other bidders have promised it and/or to get support for their bid?

:iwstupid:

Answer:
Not sure - but IMHO, SAIC are the ones who seem to have been drawn kicking and screaming back to some kind of UK production idea - maybe because this was/is Triple A's idea and was Ma8ma's idea (before they got into bed with them).

What's the latest on Triple A?

Regards,
Moby

 

From: Reuters
--------------
UPDATE 3-PwC mulls three MG Rover bids, decision close
Thu Jul 14, 2005 5:52 PM BST
By Michael Smith


LONDON, July 14 (Reuters) - Administrators were considering three rival proposals to buy Britain's MG Rover and said on Thursday a deal which would revive production at the bankrupt carmaker's plant in central England was expected soon.

Shanghai Automotive Corp. (SAIC) joined forces with Martin Leach, Ford Europe's (F.N: Quote, Profile, Research) former boss, to launch a joint bid on Thursday which they said may save up to 1,600 jobs.

Chinese rival Nanjing Automotive was also in talks with administrators PricewaterhouseCoopers (PwC), while British businessman David James has been seeking a government loan guarantee to get his separate proposal off the ground, sources close to the matter told Reuters.

PwC did not name the interested parties but said they planned to acquire all of MG Rover and Powertrain, MG Rover's car and engine-making business.

"We are locked in detailed discussions with three separate parties, each of which is at a different stage of completing its negotiations," joint administrator Tony Lomas said in a statement.

"All of the potential buyers have an ambition to continue at least some car production in the UK although it will take some time for any of them to get production up and running again."

MG Rover filed for bankruptcy in April under debts of 1.4 billion pounds ($2.5 billion), with the loss of 5,000 jobs after the carmaker was forced to close its production plant at Longbridge in central England.

SAIC, which pulled out of a joint venture expected to save the carmaker earlier this year, signed a letter of intent with Magma Holdings Ltd, a London-based company founded by Leach and former General Motors (GM.N: Quote, Profile, Research) executive Edward Sabisky.

"Magma intends to acquire all of the assets of MG Rover Group Ltd. and Powertrain Ltd.," SAIC said in a statement.

Magma also plans to form a new company to restart production at MG Rover's car production plant at Longbridge, it said.

Sources close to the situation told Reuters the Magma proposal involved what they described as "serious" production at Longbridge, although nowhere near the levels seen before MG Rover collapsed.

The consortium is also proposing to establish a design and engineering centre there employing 1,300 to 1,600 people.

Other sources familiar with the situation have told Reuters that production of engines for the convertible MGTF model would probably move offshore under a deal. MG Rover used to supply engines for 14,000 MGTF cars a year.

Details of the other two bids were not clear. PwC's Lomas said he was hopeful of concluding a deal soon.

The Transport & General Workers Union (TGWU) said it backed the SAIC proposal, which it said offered the best chance of saving some jobs at Longbridge. (Additional reporting by Gerard Wynn)
-------------------------------------------------------

Here is the link: http://today.reuters.co.uk/investing/financeArticle.aspx?type=allBreakingNews&storyID=2005-07-14T165222Z_01_L14235825_RTRIDST_0_AUTOS-MGROVER-UPDATE-3.XML


Have you noticed, Reuters did not spend one single word about the third U.K. bidder? :bigeyes:

 

BBC Midlands News at 6:30 pretty much confirmed what we already know. 3 bids, with Magma possibally being the favourable one.

 

BBC Midlands News at 6:30 pretty much confirmed what we already know. 3 bids, with Magma possibally being the favourable one.

Looks a bit more serious now though i think with regards to the bids that PWC have got. But i can fully understand what the MP said about false hopes..

 

The race is on...

SAIC has sensationally entered into the bidding race to pick up the assets of MG Rover from PwC. Alongside industry mainstay, Martin Leach, the two parties are in the process of negotiating for MG Rover's production facility at Longbridge.

This move would make Magma the overwhelming favourite to pick up Longbridge from PwC, is SAIC already owns the rights to build Rover's model range and the K-Series engine. Leach and Ed Sabisky, a former General Motors finance specialist, have obviously convinced SAIC of the validity of Longbridge (MGR and Powertrain), and one can assume that SAIC will be using Birmingham as its centre of operations in a European push.

It remains to be seen whether the cars that emerge from Longbridge will be wearing Rover badges or not, but with the MG marque still in British hands, there will be no legal or financial hurdles to re-starting production of the existing range wearing MG badges.

However, PwC announced today that it is still in discussions with three interested parties - two Chinese, and one British. The Chinese end is taken by SAIC and former Joint Venture partner in MG Rover, Nanjing (the bid is being assisted by Phoenix Venture Holdings' director, Nick Stephenson). As for the Brtish party still in the running, are we looking at is probably company 'doctor' and Dome rescuer, David James (see below)...

With RDX60 engineering near competion (but mothballed in 2003), would this form the basis of a mid-range push to complement the Rover 75/ZT, or would this be scrapped in favour of a new venture? After all, as has been suggested, Martin Leach is a 'Fiat' man, and MG Rover did try to negotiate for the Stilo platform in the past...