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Phoenix Trying to Buy Rover Engine Business for $16

22 May 2000

    London - The Phoenix Consortium is at it again, this time trying to buy the 
Rover engine and transmission business from BMW.  Reports state that this 
deal, similar to the one that John Towers and Phoenix made for the Rover 
badge and plant about two weeks ago, will also cost just $16 and may be 
completed in the next two weeks.

    Working with Phoenix on the new deal is David Bowes, Managing Director of 
Lola, and former head of the Rover powertrain operation.  It's hoped that 
the association between Rover and Lola will lead to a new line of Lola 
influenced MGs.  The MG marque was included in Phoenix' first deal with BMW.

    But not everything's coming up roses in Phoenix' Camelot.  British auto 
union leaders are against the proposed hiring of Kevin Howe to run the 
Rover, et al business, and such an appointment could spoil the honeymoon 
between Phoenix and the workers.  Howe, who is currently with the 
Rolls-Royce jet engine company, had previously been with Rover.  His tough, 
inflexible management style won few friends with the union.

    On another front, Honda has decidedly rejected Phoenix' offer to buy 49% of 
Rover within three years.  This leaves Rover with the need to find another 
partner that can provide the technological and financial support it will 
need in the near future as they hope to introduce new competitive models.


MJR