Carmakers Offered Kirch Stake

Bankers acting for the failed Kirch media group have offered carmakers a 30 percent stake in Formula One's holding company SLEC, The Guardian newspaper reported on Tuesday.

The British paper said the offer was conditional on the carmakers involved in Formula One scrapping their plans to start a championship series of their own from 2008.

However the manufacturers group - Ford, FIAT, Renault, BMW and DaimlerChrysler - "believe the offer is insufficient and have lobbied for a figure closer to 80 percent", the paper said.

Kirch controls some 75 percent of SLEC, which has a 100 year deal to run the commercial side of Formula One, while the rest is held by Bernie Ecclestone. Part of the German media company, burdened by massive debts, filed for insolvency last week.

Leaders of the GPWC (Grand Prix World Championship) firm set up by the European carmakers to plan their own series met at last weekend's San Marino Grand Prix.

They said in a statement setting out their aims and intentions that Kirch's bankers had approached them and that they would examine the proposal "provided it was consistent with GPWC's objectives".

A majority of the current teams are either owned by or have major links with the manufacturers, but not everyone was convinced by their stance. The Guardian quoted one unnamed team principal as saying: "some of these car company bosses are on an ego trip.

"You'd have thought they could work out that, in the current economic environment, what Formula One needs more than ever is long-term stability.

"Nobody seriously believes they have a hope of starting their own series. It's just designed to put pressure on Bernie and Kirch."