MG Rover administrators were in talks with two Chinese bidders for parts of the bankrupt British carmaker, though one potential British partner dropped out of rescue talks, unions and sources said.

Administrators PricewaterhouseCoopers (PwC) were talking to China's Nanjing Automotive and a consortium backed by China's biggest carmaker Shanghai Automotive Industry Corp. (SAIC).

SAIC, which pulled out of a joint venture expected to save the carmaker earlier this year, was talking to former Ford Europe boss Martin Leach about a joint bid for MG Rover that could save the carmaker's Longbridge plant, unions said.

"The bid headed up by Martin Leach offers the brightest prospects for Longbridge. It looks as though there is the possibility of real progress," said a spokeswoman for the Transport & General Workers Union, which backs the Leach bid.

MG Rover filed for bankruptcy in April under debts of 1.4 billion pounds (US$2.44 billion), costing 5,000 jobs after the carmaker was forced to close its production plant at Longbridge in England.

SAIC was also in talks with Birmingham businessman David James to save the business but it now appeared a deal with James was unlikely after weekend talks, said a source close to the situation.

Administrators set themselves an October deadline last month to wrap up the sale of MG Rover, which collapsed in April.

(Shenzhen Daily July 13, 2005)