MG brand targeted by Lotus offshoot

THE firm that sprang from the ashes of the Lotus empire is close to buying the MG brand and the TF two-seater sports car from MG Rover's administrators.

Chapman Automotive, founded by Lotus creator the late Colin Chapman, is in final negotiations with administrators PricewaterhouseCoopers to buy the assets.

It also wants to buy the manufacturing equipment to build the car. Market observers believe Chapman will have to stump up at least £20m.

The news comes after weeks of speculation over the intentions of potential bidders including Russian billionaire Oleg Deripaska and Iranian firms Iran Khodro and Saipa.

Colin Cushing, one of Chapman's three directors, told the Mail: 'Our bid is serious.' He added that he hoped to have signed the necessary paperwork by early next week.

A spokesman for PwC's lead administrator Tony Lomas would not comment on the progress of talks with Chapman, which has been run by Lotus' former design director Colin Spooner since the founder's death in 1982. Lotus has been owned by Malaysian car-maker Proton since 1988.

Few, if any, of the 6,100 jobs lost at Rover's Longbridge plant are likely to be saved.

It will be a double blow as it remains unclear whether the MG Rover pension scheme, which is more than £400m in the red, will be covered by the government-run Pension Protection Fund.