Spyker cars in race for Formula 1

Dutch luxury sports car maker Spyker is in talks to buy minor Formula 1 racing team Midland, Spyker announced this morning. The Midland team – which includes Dutch racing driver Christijan Albers, is currently owned by a steel company called M Consortium.

If the takeover talks are successful, Spyker may issue new shares to finance the deal. M-Consortium will take a proportion of those shares.
Spyker chairman Victor Muller said Formula 1 was a good way of promoting his company’s products. ‘It is, without doubt, second only to the World Cup,’ Muller said. Formula 1 was no longer a loss making activity, he said. ‘It used to be that the team investing €500 mln got 80% of the television rights, but that is changing with the new rules. From 2008, smaller teams like Midland are in with a better chance.’ Then, the income from tv rights and will be more equally shared among the teams and there will be a three-year moratorium on new motors. Sponsorship, another important source of income, would be more easy to get for Spyker than a steel company, he told BNR Nieuwradio. Muller who owns 28.5% of Spyker declined to give financial details. Spyker has yet to make a profit. The company had sales of €12.8 mln in the first six months. Formula 1 fansite Paddock Talk but the likely takeover price at $100 mln.

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