MG Rover: One of the biggest smash-and-grab raids in history

The 'Phoenix Four' mounted one of the biggest raids in corporate history. But Tony Blair's government must shoulder a large chunk of the blame.

The Government report into MG Rover's collapse makes for "nauseous" reading, says Robert Peston on the BBC website. In May 2000, the Phoenix Consortium John Towers, John Edwards, Peter Beale and Nick Stephenson bought the loss-making business from BMW for a nominal £10.

So desperate was BMW to be shot of it that it handed over a dowry of £75m and a 49-year interest-free loan of £427m. Five years later, in April 2005, 6,300 Rover workers joined the dole queue as the car maker went under with debts of more than £1.3bn. The Phoenix Four and CEO Kevin Howe walked off with £42m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.