James Packer owns an Aston Martin worth about $437,000. Photo / Reuters
James Packer owns an Aston Martin worth about $437,000. Photo / Reuters
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Australian billionaire James Packer could drive away with a bargain in his bid to buy British car company Aston Martin as rivals question the asking price, new reports say.
Australia's richest man is part of a consortium competing with at least four other bidders for the maker ofJames Bond's favourite car, including private-equity groups Permira Advisers and Doughty Hanson and Magna International - Canada's biggest maker of car parts.
The Sydney Morning Herald reported yesterday that Aston Martin's US owners Ford want about £600 million ($1.7 billion) for the British-based company but the asking price is dropping as bidders discover potentially costly obligations.
The problems are a shortfall in employee pension funds and money allotted to cover employee company cars, which have prompted bidders to lower their offers to about £400 million, the paper said.
But the report said sources close to Ford had denied the claims, saying that bidders were increasing their offers as the January 31 tender deadline approached.
Packer, executive chairman of Publishing and Broadcasting, owns an Aston Martin DB9, worth about A$385,000 ($437,000).
Aston Martins are known for their appearances in Bond movies, starting with 1964's Goldfinger, and most recently in last year's Casino Royale.
Ford executive vice-president Lewis Booth said this month that the sale of Aston Martin would occur "sooner rather than later".
Ford last year put 92-year-old Aston Martin, which makes cars that sell for $158,000 or more, on the sales block as it reviewed its assets and brands amid losses.
Aston Martin sold about 6500 cars worldwide last year, rising from about 4500 in 2005.
Ford chief executive officer Alan Mulally said that Ford did not plan to sell Jaguar, another UK-based unit, "at this time".
Ford, which bought a majority stake in Aston Martin in 1987, is selling some assets after losses that reached almost US$7 billion through three quarters of last year.
