Leyland: wait longer
Page 4
If you've noticed an error in this article please click here to report it so we can fix it.
THE MARCH 4 deadline for bids for Land Rover-Leyland looks like being extended because of the growing political row over the possible sale of most of it to General Motors.
C;overnment sources are furiously playing down the importance of the March 4 TIIE GENERAL MOTORS buy-out of Leyland Trucks should go ahead, an in financial survey of the commercial vehicle indus, try says.
It may the be only way to counter the continuing difficulties which Leyland Trucks is facing in its domestic and international markets, the latest ICC business ratio report on the commercial vehicle predicts.
Over the three years to January 1985 the report studies the financial performance of 100 leading companies in the industry, and divides them into five subsectors.
Of the five commercial vehicle manufacturers, importers and distributors, bodybuilders, trailer manufacturers and vehicle componentmanufacturers commercial vehicle' manufacturers show the poorest performance.
"British companies have proved ineffective at gaining new overseas customers and their home market is contracting," it says. date set by BL's merchant banker, Hill Samuel. It insists that it is only the time by which interested parties must make clear their intention to put in a bid.
It now appears that the Government has abandoned hopes of reaching a decision by Easter, in order to give rival bidders a better chance to assess the needs of the British Leyland subsidiaries before making a formal offer.
The Cabinet Committee set up by Prime Minister Margaret Thatcher last week met for the first time this week. Its members include Social Services Secretary Norman Fowler and Energy Secretary Peter Walker who led the Cabinet opposition to the sale of Austin Rover to Ford.
They arc equally likely to oppose to the sale of Land Rover.
Industry Minister Peter Morrison also admitted this week that the Government approached General Motors in mid-19 8 4 to discuss the rationalisation of the UK commercial vehicle industry.
But it was not until October last year that it was decided that General Motors would make a formal bid for Leyland Trucks and Land Rover.
At the weekend former Tory Premier Ted Heath attacked the Government over the sale. He described it as "the unacceptable form of privatisation".
He warned that the Government would ignore public opinion at its peril. Thatcher met West Midlands Tory MPs on Thursday. They told her in no uncertain terms of the hostility to the sale of Land Rover in key marginal scats.
The leading alternative bid for Land Rover appears to be a management buy-out being led by Land Rover-Leyland chief David Andrews.
His team includes Land Rover managing director Tony Gilroy, Freight Rover managing director George Simpson, Land Rover parts chief Alan Simpson, Land Rover International managing director Chris Woodwark and the group's employee relations director, Trevor Toolan.
Their original three-week timetable to rival GM's bid put last week at 1230 million for Land Rover-Leyland plus 140 million for 1,000 redundancies is thought to be nigh impossible.
Leyland Bus managing director Ian McKinnon is leading a bid to beat the Laird Group's proposal to buy his company from BL.