Tuesday, February 14, 2006

Lotus for 1 Pound?




Former Proton boss Tengku Mahaleel asks Proton Chairman: How about selling Lotus for £1?

Tengku Mahaleel, the former chief executive officer, said that since Proton has now set a precedent by selling a Malaysian-owned foreign firm for a token amount with the disposal of MV Agusta SpA, "we (he and Mahathir) would like to publicly register our interest to acquire (Lotus) for £1, if and when it is up for sale."

He added that they would also like to table a bid even if Proton considers selling Lotus for more than £1.

Tengku Mahaleel said he and Dr Mahathir were disappointed that Proton had not responded to their queries after MV Agusta was sold to GEVI SpA for E1 (RM4.42).

"It took us 14 months to decide and complete the acquisition of MV Agusta, and they got rid of it in two-odd months.“ "Why were there no consultants hired to thrash out the decision?"

He stressed that the MV Agusta management neither had an opportunity to state their case nor were they included in the meetings to decide the company’s fate. He claimed Proton had also refused an offer from MV Agusta chairman and shareholder Claudio Castiglioni to buy it for E1 and assume its liabilities in order to save it.

Tengku Mahaleel dismissed the notion that MV Agusta was not a profitable venture, saying that it could be a money-spinner for Proton in the medium term. He noted that the firm was expected to make a pre-tax profit of E50 million in 2010, based on a PriceWaterhouseCoopers forecast. "With the changing Malaysian auto policy, Proton’s future cash flow will not be sustainable as its domestic market share falls below 30 per cent. Therefore, the combination of Lotus and MV Agusta is crucial for Proton’s future."

Another round of mudslinging from the two Ms. Brace for more!!!!

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