Going Private

A leading London head-hunter told us the other week that he had noticed an increasing interest amongst senior managers in moving from the limelight of the FTSE to private equity financed companies. "Less publicity and the opportunity to earn a proper penny without all that tiresome hoo-ha", said he.

We were therefore most interested in an article by Christine Buckley in the 'Times', concerning the four men who now lead MG Rover, bought, readers may remember, from BMW for £10 in 1999.
Buckley reports, "At issue is a corporate structure that leaves certain assets worth £70 million and including the Powertrain engine business, and MGR Capital, a car loan operation, in the hands of Phoenix Venture Holdings.

The company is owned by four men - John Towers, Nick Stephenson, John Edwards and Peter Beale. The four men, who bought MG Rover from BMW for just £10, reject suggestions that the restructuring was an asset stripping exercise".

"......Martin O'Neill, chairman of the (Trade and Industry) Select Committee, said that there would be a full examination of MG Rover. Reports that the directors were in line to receive £30 million in pay, bonuses and other benefits and that they had ring-fenced companies worth £70 million, had damaged the trust given to the business when it was rescued. He said, "I'm sure that a lot of men and women in the community will be wondering what is happening".

So, according to our head-hunter friend are a lot of top managers in the quoted sector.....