New date for Leyland sale
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• In the wake of the failed GM bid for Land RoverLeyland, the BL board has written to Lonrho and Schroder Ventures — which is acting for the Land Rover management buy-out team — asking them to confirm or revise their proposals for Land Rover by April 15.
However, the BL board has Oven no signs that it favours either offer and states: "After April 15, it may wish to hold further discussions with prospective purchasers of the businesses before recommending whether or not any of the proposals received are to be pursued or the companies retained in BL ownership."
Although April 15 "is not a deadline," according to Land Rover, the board does intend to make a decision "as soon thereafter as possible".
One of the prospective bidders for Land RoverAveling Barford — has already been told that its proposals, which excluded Range Rover, will not be pursued by the BL board. However, separate discussions are taking place between BL and Aveling over the future of Leyland Bus.
Lancashire Enterprises has also been invited to meet the management of Leyland Trucks and Leyland Bus, to see if it can play any part in the future of either or both companies.
A report in The Daily Telegraph on March 29 says that GM originally wanted to pay up to 2130 million for Land Rover-Leyland and to close Bedford's truck plant at Dunstable, Freight Rover's Birmingham plant and Leyland's Scammell plant al Watford with the loss of 4,1 jobs.
GM also wanted to use imported parts in Land Rovers, according to the report which quotes a Whitehall source as describ the plan as "rape".
By the time the negotiations collapsed, GM understood to have reprievi Freight Rover, to have offered increased Land Roy production, increased Britis content and investment and made a higher bid of 2230 million, £150 million of it in cash.
Prime Minister Margaret Thatcher is still confident ti talks with GM can be revivi Trade and Industry Secretary Paul Channon hat promised MPs that the Government will continue tc operate Leyland Trucks on the basis of existing BL plat and he reminded MPs that i requires a fresh injection of taxpayers' money as new capital.
But the Department of Trade and Industry is less willing to be drawn on the issue of whether further loa guarantees might be needec to prop up the loss-making division, which has now sei2 market leadership.