Rover: No China talks this week
THE Government's £6.5m lifeline for Rover will run out before the company's administrators hold any substantive talks with a possible Chinese buyer.
The admission, by Steve Lomas, a partner at PricewaterhouseCoopers at a press conference today, casts a shadow over attempts to save the Birmingham-based car company.
Lomas said that PwC had received numerous approaches over the weekend from entrepreneurs and financial buyers. But none, he said, was in a position to advance the money needed to keep the business going.
Most workers at Powertrain, the MG Rover engines business, have been sent home today after turning up for work, as will other Rover workers following a mass meeting.
Meanwhile, Lomas admitted that although Shanghai Automotive Industry Corporation (SAIC) remained the most likely bidder for Rover there has not yet been any meaningful contact with the company since the car group went into administration on Friday.
Lomas said: 'We talked to individuals in Rover and the company's advisers, including Rothschild who were and possibly are retained by SAIC. We will work with the Department of Trade and Industry and our own practice in China to get an audience with SAIC. We are hopeful we'll get an audience to see if they are still interested.'
Lomas said the DTI's temporary loan of £6.5m would last for a week and that the Government had promised to 'review' the situation then. He added: 'Our hope is that if there is commercial logic in pursuing a dialogue [with the Chinese], the DTI will continue its support. But I can't give any assurances on that and neither can they.'
He added: 'I don't want anyone to be in any doubt that even if interest is expressed by SAIC that any deal can be completed in short order because it won't. Lots of parties are involved and it is a very complex situation.'
