Tuesday 8th May 2007

Aston backer is flooded with offers

Kuwait-based company receives offers for its stake in Aston Martin

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Another change of owner?

Investment Dar, the Kuwait-based holding company that operates under Islamic law, has disclosed that it has been flooded with offers for its current stake in Aston Martin.

The group put up £240M for a 50% stake to help buy Aston Martin from Ford as part of a £479M bid fronted by Prodrive boss David Richards. Now, less than two months since the bidding process, it has been reportedly been offered £360M even before the completion of purchase.

"We are receiving bids daily," Investment Dar Executive Vice President Amr Abou El Seoud said. "We're getting bids at a 50 percent profit. The company will probably hold onto its stake for at least a year before selling a portion", Seoud added. "We have a plan and strategy that we would love to see implemented before thinking seriously about selling," although he declined to give any details about the plan. "We are not expected to exit but rather to diversify to seek value-added investors to share with us," he said.

Another report has a source quoted as saying the group will not sell until it has made a 100% profit. Meanwhile, Richards has insisted there are no plans for an early exit.

[bob1179]

Hmmmmmm.

What worries me about these guys is that they have no idea about the motor industry. They are just there to make a profit. What happens if Aston Martin doesn't make as much money next year? They won't get their money back and will want to dump their share asap without any care to happens to the company or its employees.

[bob1179]

It is just wishful thinking on my part. I would love to see Aston martin taken on by people that were interested in the marque and the history and value associated with them, also looking forward to keeping the company going through investment and development.

Not a bunch of venture capitalists out to make a quick buck.

I realise the MG-Rover and TVR cases were different, but look at what happened to them, I'd hate to see AM going the same way in a few years time due to shoddy management and poor investment, especially as they are at the top of their game at the moment.