It seems that SAIC (Shanghai Automotive Industry Corporation) might not buy MG Rover, because the British carmaker is in such bad shape.
Today’s Daily Telegraph reports:
Talks between cash-strapped British car maker MG Rover and Chinese motor giant Shanghai Automotive Industry Corporation stalled last night, raising the prospect of thousands of job losses in Labour’s key West Midlands heartland on the eve of the general election.
…The two sides have been in talks about the proposed takeover since last November. Under the terms outlined then, the Chinese company, which has already invested £67m in the company, was due to take a 75pc stake in a new joint venture company set up to control MG Rover…
There follows a rather unappealing mixed metaphor:
However, Chinese confidence in MG Rover has ebbed as its financial problems became apparent. One source said: “When an inch of the skirt was lifted, it revealed a whole can of worms.”
LINK:
Daily Telegraph: Chinese step on brakes in Rover talks