Chinese to block Rover sell-off
HOPES of selling carmaker Rover to a single buyer were fading this weekend.
Shanghai Automotive Industry Corporation has threatened legal action to stop administrator PricewaterhouseCoopers completing a deal without its permission.
In an increasingly bitter row, a well-placed source said the Chinese would go 'as far as an injunction' to enforce its ownership of Rover's intellectual property rights, which it bought in a £67m deal last August.
The revelation comes at a sensitive time with PWC administrator Tony Lomas insisting that talks to sell the business were continuing with at least two parties.
Threats of an injunction could derail any deal, making a break-up of the carmaker more likely.
The Chinese company maintains that it bought the intellectual property rights to the Rover 25, 75 and K series engines. PWC has engaged lawyers to examine the claim.
A Rover source argued that SAIC had, in fact, only bought rights over parts that were 'exclusive' to the Rover car. If a new buyer were to acquire the business, an alternative supplier for these parts could be found, the source said.
But SAIC could still go to court if it believes its interests are being ignored.
THOUSANDS of Rover workers in the Midlands will be offered a chance of a new career in a Government-sponsored job creation scheme, writes Tom McGhie.
About 4,000 workers from the car company will become adult apprentices to local firms. They will be offered transport costs to their new place of work while the firms will be given thousands of pounds to train the new staff.
