M&M to bid for UK van maker LDV

Mahindra & Mahindra is reported to be one of the three suitors for the UK, Birmingham-based struggling van maker LDV owned by Russian billionaire Oleg Deripaska's GAZ Group.

The Times has reported that UK government contacted M&M, the market leader in multi-utility vehicles in India, and another company based in the Far East were the during the weekend to find out ''their commitment to LDV.''

The third interested party is a former executive of a top line American car manufacturer, who is looking for partners to bid for LDV, but his bid is still at a nascent stage.

Government officials were making hectic efforts over the weekend to save the van maker from collapse after the UK government refused to provide it with an additional £20 million-£30 million bridging loan beyond the out £24 million already doled out to LDV at the time GAZ acquired it in 2006.

LDV was acquired by Russia's second largest car manufacturer, Gaz from an affiliate of Sun European Partners in 2006 but due to declining vehicle sales in the UK and overseas, Gaz said that it could no longer support LDV financially as Gaz  had lso been suffering ftrom low vehicle sales in Russia and was restructuring part of its debt.

The City Council of Birmingham, where the LDV plant is located, said that it was not in a position to bail-out the van maker but was worried about the 850 workers and 5,200 dealers and suppliers, who depended on LDV for their survival.

Last week, LDV offered vans as part-payment in lieu of the money owed to dealers and some suppliers, to whom it is reported to owe tens of millions of pounds.