This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8194481.stm

The article has changed 9 times. There is an RSS feed of changes available.

Version 1 Version 2
No probe into MG Rover collapse No probe into MG Rover collapse
(29 minutes later)
The Serious Fraud Office (SFO) has said it does not intend to launch a criminal investigation into the collapse of carmaker MG Rover.The Serious Fraud Office (SFO) has said it does not intend to launch a criminal investigation into the collapse of carmaker MG Rover.
Its announcement comes a month after Business Secretary Lord Mandelson asked the SFO to study the results of a four-year independent report into the saga.Its announcement comes a month after Business Secretary Lord Mandelson asked the SFO to study the results of a four-year independent report into the saga.
Midlands-based MG Rover collapsed in 2005 with the loss of 6,500 jobs.Midlands-based MG Rover collapsed in 2005 with the loss of 6,500 jobs.
The four executives in control of MG Rover, the so-called Phoenix Four, have always denied any wrongdoing.The four executives in control of MG Rover, the so-called Phoenix Four, have always denied any wrongdoing.
The SFO said that it could not comment about the reasons for its decision because the inspectors' report had not been made public.The SFO said that it could not comment about the reasons for its decision because the inspectors' report had not been made public.
The BBC understands the report will be released within the next few weeks. The report will be released on 11 September.
'No evidence' 'Flabbergasted'
The four - John Towers, Nick Stephenson, Peter Beale and John Edwards - came in for criticism after the firm's collapse when it was revealed that they had taken out an estimated £40m in pay and pensions. The four - John Towers, Nick Stephenson, Peter Beale and John Edwards - came in for criticism after the firm's collapse when it was revealed that they had taken an estimated £40m in pay and pensions from the company.
MG ROVER'S DEMISE 2000: Sold by BMW to the Phoenix Four for £102000-2004: Made losses of £611m in the first four years2004: Started talks with Shanghai Automotive Industry Corporation (SAIC)2005: SAIC pulled out of a deal to save the whole company and MG Rover goes into administration2006: MG Rover's assets sold to Nanjing Automobile2007: Nanjing resumes MG production at the Longbridge plant In pictures: Rover through the years Workers' shock over fraud inquiryMG ROVER'S DEMISE 2000: Sold by BMW to the Phoenix Four for £102000-2004: Made losses of £611m in the first four years2004: Started talks with Shanghai Automotive Industry Corporation (SAIC)2005: SAIC pulled out of a deal to save the whole company and MG Rover goes into administration2006: MG Rover's assets sold to Nanjing Automobile2007: Nanjing resumes MG production at the Longbridge plant In pictures: Rover through the years Workers' shock over fraud inquiry
A spokesman for the four said last month that "both the National Audit Office and the MG Rover administrators, PWC, carried out thorough investigations into the company's affairs and concluded there was no evidence whatsoever of any wrongdoing". A spokesman for the four said the directors had always maintained there was no basis for a criminal investigation as the question of fraud had never been raised.
Its study of MG Rover comes after the completion of a four-year inquiry under section 432 of the Companies Act by independent inspectors appointed by the Department for Business, Innovation and Skills. They were "flabbergasted" when the Business Secretary Lord Mandelson referred the matter to the SFO, he added.
"The decision to refer the matter to the SFO was the latest in a long line of bizarre and wholly unnecessary twists in the MG Rover story," the spokesman said, adding the directors had "very little faith" in the inquiry, and were sceptical whether the department would publish a final report that was "properly balanced and objective".
"The directors and many others with an interest in MG Rover fear that anyone thinking that this inquiry will get to the heart of the matter is in for a disappointment."
China sale
The study of MG Rover came after the completion of a four-year inquiry, costing £16m, by independent inspectors appointed by the Department for Business, Innovation and Skills.
The Phoenix Four took control of MG Rover in May 2000 after buying it from previous owner BMW for a nominal £10. They also gained an interest-free loan of £427m from the German firm.The Phoenix Four took control of MG Rover in May 2000 after buying it from previous owner BMW for a nominal £10. They also gained an interest-free loan of £427m from the German firm.
They were eventually unable to turnaround MG Rover's fortunes, and it went into administration under insolvency procedures in April 2005, with debts of more than £1bn. They were eventually unable to turn around MG Rover's fortunes, and it went into administration under insolvency procedures in April 2005, with debts of more than £1bn.
Its assets were subsequently sold in 2006 to China's Nanjing Automobile, which revived the MG sports car brand.Its assets were subsequently sold in 2006 to China's Nanjing Automobile, which revived the MG sports car brand.