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Sunday, September 02, 2007

Vijay Mallya in joint bid for Formula One team

Indian businessman Vijay Mallya has teamed up with Spyker's director of Formula One, Michiel Mol, to make an 80 million euro ($109.3 million) bid for the cash-strapped team.

"This offer has been accepted by the Board of Spyker Cars N.V. and exclusivity has been granted to the consortium Orange India Holdings Sarl to proceed with due diligence... to achieve completion within 30 days," the partners said in a joint statement late on Friday.

Strongwind, the investment arm of the Mol family, and Watson Limited, which is owned by Mallya, are making the offer. Mallya is the chairman and controlling shareholders of the UB Group, which has beer, spirits and airlines operations in India.

Spyker Formula One team is owned by Dutch luxury sports car maker Spyker Cars NV.

Spyker, founded in 2000, is now reviewing its financing and strategy due to liquidity problems. It acquired the Formula One team from Midland for $106.6 million last year.

Spyker posted a net loss of 29.9 million euros in the first half of the year, up from a loss of 1.1 million euros in the year-ago period. It has said it expects to make a loss this year. The Formula One team had a 13 million euro loss.

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