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Four Banks Ready to Back Rover Bid

7 May 2000

Phoenix Consortium Claims One UK and Three Foreign Banks Will Provide Funding 

    London - At the meeting that took place this past Friday between John
Towers, the former Rover CEO, and Stephen Byers, the British Trade and
Industry Secretary, Towers' Phoenix group revealed that Abby National, two
American banks and a third foreign bank have all announced their financial
support for a deal that will allow Phoenix to 'rescue' Rover Motor from BMW.

    Purportedly, the two US banks have offered about $360 million for working
capital.  Although Abby National had previously denied rumors of  any
interest in helping Phoenix, they may now be willing to invest between $360
million and $750 million in the deal.

    Previously, another company, Alchemy (headed up by Jon Moulton and Eric
Walters) had dropped their plan to acquire Rover due to extra costs added
to the deal by BMW, which prompted the Phoenix attempt.  However,
interestingly enough, there are now reports that Alchemy is prepared to
revive its bid for Rover.  The Alchemy group has had at least one recent
meeting with the government, which seemingly has greatly upset the Phoenix
people.

    Should BMW make good on its threat to close Rover, and no suitor has made a
successful takeover, more than 50,000 jobs may be lost. It is also
estimated that if BMW closed Rover it could cost them up to $2.5 billion.

    BMW's ultimatum to announce the Rover closing within 10 days if a new
purchaser is not found expires the middle of this coming week.