BMW seeks £500m from Rover

By REUTERS
Updated:

 

BMW is seeking the repayment of a £500m working capital injection from its former Rover unit once the British car maker returns to profit. Until now the new owners of MG Rover, which aims to return to profit by 2002, had viewed the £500m as a dowry.

BMW's demand came to light after the company said last week that accountants Ernst & Young had begun arbitration on unresolved issues arising from the sale of Rover.

The German car maker sold the loss-making Rover unit for a symbolic £10 in May.

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