[25/11/05 - 13:00]
Ecclestone in Formula One money move
Investment firm to buy up SLEC shares
Is Ecclestone set to sell his stake in SLEC?
Motor racing supremo Bernie Ecclestone and German bank BayernLB said Friday they were selling control of Formula One motor racing to private equity group CVC Capital Partners.
BayernLB owns about half of SLEC, the company that controls Formula One's commercial rights. Together with Ecclestone's 25 percent holding, CVC will own 75 percent of SLEC.
CVC is also in talks to buy the remaining shares in the company, which are owned by Lehman Brothers and JP Morgan.
Ecclestone was expected to stay in control of Formula One racing which faces a challenge from five major carmakers who plan to launch their own series in 2008 unless significant changes are made to the way that Formula One is run.
The Grand Prix Manufacturers Association wants better corporate governance and a bigger slice of the sport's commercial earnings.
CVC Capital Partners also owns a majority stake in a Spanish-based company called Dorna Promocion which owns the rights to MotoGP. In addition, CVC owns well-known UK brands such as Debenhams, Halfords, The AA and Kwik-Fit. CVC has yet to make any official announcement.
E.A.
Source AFP
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