Rover faces £355 million cost
21st March 1987, Page 7
21st March 1987
Page 7
Page 7, 21st March 1987
— Rover faces £355 million cost
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• A Rover Group shareholders meeting next Friday is expected to give fortrial approval to the disposal of the group's Leyland Truck, Freight Rover and Leyland Bus subsidiaries.
The disposal of Leyland Trucks and Freight Rover to a joint company controlled by Daf Trucks is expected to cost Rover Group around £300 million. A further £55 million will be allocated to cover the cost of disposing of Leyland Bus.
A second shareholders meeting on Friday will be asked to approve an increase in capital for the Rover Group. This will enable the Government to raise its share in the group from 99.7% to 99.8%, through a £680 million cash injection, necessary to save Rover from technical bankruptcy.