Confusion surrounds Rover sale

On Monday, rumors broke that BMW was nearing an agreement with Chinese automaker Shanghai Automotive to sell the rights to the Rover brand for around $20 million. The possible deal was reported by the U.K.'s Birmingham Post, which said an announcement would come later this week. Today, the U.K.'s Financial Times claims to have confirmed the deal. But there are conflicting reports about comments from BMW spokespeople and representatives.





The Guardian Unlimited says a BMW spokesman confirmed the deal. "Agreement has been reached in principle with SAIC." He said closing of the deal would depend on whether Ford would exercise its right to acquire the name first. (When Ford bought Land Rover from BMW, the German automaker agreed it would have first dibs on the Rover brand as well).

"While an agreement has been reached, the completion of the sale is conditional upon whether or not Ford takes up its right to buy," The Australian quoted a spokesman as saying.

"We have no plans ourselves to revive the Rover brand and always said we were happy to sell, provided Ford agrees," BMW reportedly told the Guardian.

But conflicting reports have surfaced that call the report into question. "The deal is not done yet," another BMW spokesman told Reuters from Munich. The AFX news service is reporting much the same thing, saying no deal has been made. "We are currently negotiating with a few interested parties, including SAIC, regarding the sale of the rights, but no agreement has yet been reached," a representative said.

We'll keep you posted as this story develops...