Nanjing approaches rival bidders to sell majority stake in MG Rover's assets

Nanjing Automobile has approached some of the failed bidders for MG Rover in an attempt to sell a majority stake in the collapsed UK carmaker, just three days after the Chinese manufacturer won the bid.

Nanjing, which paid just over £50 million (€72.4 million) for the assets of Rover and Powertrain, its engine arm, wants outside funding and a management team for the UK operations.

The sale would not include equipment for making engines and production lines for the small and medium cars, which will be boxed up and shipped to China.

It contacted Fraser Welford-Winton, who led a rejected management buyout bid, at the weekend, after its bid was successful on Friday.

The sale attempt is likely to stoke controversy over the bidding process, with Shanghai Automotive, China's biggest carmaker, and David James, the corporate turnaround expert, angry at the way Nanjing was picked.

Nanjing said it was ready to take investment from Chinese carmakers too, suggesting SAIC - in spite of its attack on the sale - could be asked to be a partner.

Liu Ningsheng, Nanjing's head of public affairs, said the group was open to approaches from domestic and international car companies, as well as local governments in China, to invest in the Rover business, but he did not comment on whether this included SAIC, or if Nanjing would sell a majority stake.

Mr Welford-Winton refused to say exactly what he was discussing with Nanjing, but it is understood he could lead the management team or, with his backers, buy a controlling stake.

David James said he was "very interested" in buying the MG business from Nanjing, but it is not clear whether Nanjing will insist on a minority stake.

However, Mr James was angered by the sale and SAIC was said to be "considering its legal options". Mr James offered on Friday to put in a bid worth up to £67 million, while SAIC offered between £50 million and £60 million.

SAIC said there was no room for legal interpretation over its rights to the Rover and MG engines, which it bought as part of a £67 million deal last year.