MG denies reports of SAIC takeover

UK-based MG Rover group denied reports it is to be taken over by Shanghai Automotive Industry Corp (SAIC). Automotive News Europe broke the story, quoting UK and Chinese sources. MG Rover said in June that it was seeking "a far-reaching strategic relationship" with SAIC. But John Towers, MG Rover's chairman, told the BBC that the idea of SAIC taking an equity stake in the company had never come up in discussions over their proposed technology sharing partnership. An unidentified mainland source said the acquisition depended only on the progress of the negotiations, suggesting a deal could be signed "in a few months".