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MG Rover dealers decide on stakeholding

MG Rover dealers are deciding this month whether to take up their options of shares in the new company.

The shares will have no monetary value at present but could pay dividends in the future. They would also be worth something if a larger car company decided to make a bid for the manufacturer.

Dealers across the world are being offered an allocation of shares - in proportion to their sales contribution - which would give them a 25% holding in MG Rover Holdings Ltd, a new holding company which was created towards the end of last year. The move follows an allocation of 35% of the company to MG Rover senior managers and employees last December.

The remaining 40% of the company is held by the four founding directors; John Towers, Nick Stephenson, Peter Beale and John Edwards.

Kevin Howe, MG Rover chief executive, said the aim of the share allocation was to create a “stakeholder mentality” and to reward loyalty.

An MG Rover spokesman said: “Clearly the owners of the company have to retain the right to make strategic decisions about the future of the business.”

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