LONDON - Bernie Ecclestone, the millionaire businessman behind Formula 1 motor racing, is opposed to a potential takeover by a Hong Kong conglomerate.
Hutchison Whampoa, the retail-to-telecoms giant, has approached the investment banks that own 75 per cent of F1's holding company and Ecclestone, who owns the remaining 25 per
cent through an offshore trust.
He confirmed at the German Grand Prix at the weekend that he was approached by someone who had also spoken to the banks; JP Morgan, BayernLB and Lehman Bros.
Ecclestone, who has controlled F1 for two decades, made it clear that a takeover would not be welcome.
Asked if he would welcome the kind of investment being proposed, Ecclestone delivered a firm "no", saying: "I'm happy with the banks. I've no problem with them. Why do I want to change the shareholders we've got for shareholders we don't know? I'm happy to keep working with them."
Hutchison, best known in Britain as the owner of Superdrug and mobile phones company 3, is planning a US$1 billion ($1.4 billion) bid for the 75 per cent of SLEC, the holding company for subsidiaries that own the commercial rights to F1.
The company, which is controlled by Hong Kong billionaire Li Ka-Shing, would not need Ecclestone's permission but is unlikely to proceed without his support.
Media reports say Hutchison wants to add motor racing to its empire by expanding F1 into Asia.
The banks acquired their stake after the failure of Germany's Kirch media group, which had borrowed some US$1.6 billion from them.
Formula One faces considerable upheaval, with major car-makers still threatening to set up their own rival series from 2008, when the existing commercial deal governing the sport expires.
- INDEPENDENT
