The Phoenix consortium which hopes to buy Rover Cars from BMW completed its first day of detailed talks with the German firm on Tuesday.
Phoenix boss John Towers said that his consortiurm had “detailed and positive” talks at BMW’s offices in London.
Go deeper with GlobalData
John Towers of Phoenix is meeting BMW
“We have been through a heck of a lot of detailed stuff today, and it’s also been extremely postive,” he added.
The talks are likely to continue for at least another day, after the consortium spent the weekend examining Rover’s books.
The Phoenix group of Midlands businessmen has reportedly secured £200m on backing from City firms – countering BMW’s suggestions last week that they did not have enough financial clout to put together a viable bid.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBMW has set a deadline of the end of this month before it plans to shut down Rover’s car operations, with the loss of thousands of jobs in the West Midlands.
New bid by Alchemy?
Meanwhile, the firm that withdrew from the talks on Friday signalled that it may now be willing to re-open discussions.
The head of venture capital firm Alchemy, Jon Moulton, said the door was “still open” to further negotiations despite its decision to pull out of a deal to acquire the loss making car maker.
He told BBC Radio 4’s Today programme on Tuesday that there had been “gentle contact” with BMW over the past three days. However, a spokesman for the German carmaker told the BBC that BMW didn’t see any reason to resume talks with Alchemy.
Brinkmanship
Although BMW had favoured the Alchemy bid, the firm no longer has the same advantage over Phoenix it once had.
When Alchemy pulled out of negotiations, BMW granted Phoenix its first detailed look at Rover’s books.
Jon Moulton of Alchemy: “Door still open”
The consortium now has the measure of the task and can tailor its bid to suit.
The BBC’s industry correspondent Stephen Evans said Alchemy’s decision to walk away was seen by BMW as hard bargaining.
“The BMW board took a very dim view of that kind of brinkmanship and you get an impression that they don’t like this way of dealing,” he said.
“They do deal in a very literal manner, a very straight manner.
“So it may yet be that BMW takes the view: ‘Maybe we thought you had the best offer but you walked away and we don’t like that kind of thing.'”
Blair pledges support
On Monday, Prime Minister Tony Blair had said he was personally committed to protecting jobs threatened by BMW’s decision to dispose of Rover but it is not yet clear what measures he can take. Mr Blair issued a statement saying his government would work “night and day” to secure the best interests of Rover workers and the West Midlands.
“I and the government stand ready to do whatever we can for the workers at Longbridge and the region as a whole,” he said.
