Honda 'offered 49% Rover stake'

By THIS IS MONEY
Updated:

 

New Rover owner Phoenix is to offer Japanese automaker Honda a 49% stake in the company, it has been claimed. The Sunday Times said a consortium official had met Honda last week to discuss the deal, under which Honda would provide technological and design in return for equity.

'Despite Honda's denials, we have been in secret talks with them,' said a Phoenix source quoted by the newspaper.

The head of the Phoenix consortium, former Rover boss John Towers, also vowed to slash prices to make Rover more competitive with Ford and Vauxhall.

There was speculation over who Towers would appoint as Rover's new chief executive. The Sunday Times named Kevin Howe, the former managing director of Rover's Longbridge plant. The Sunday Telegraph named Steve Lunn, another former Longbridge manager.

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