Shanghai Automotive Industry Corp, China's largest carmaker, said the company has no plans to resume talks to buy MG Rover Group Ltd, undermining Prime Minister Tony Blair's hope to rescue the deal for the collapsed UK company.

　　"It's highly unlikely SAIC would wish to become involved again with MG Rover while it remains in administration," said Rupert Pittman, a London-based spokesman for the Chinese carmaker, in a phone interview on Monday.

　　"Buying the company out of administration is not being considered at the moment."

　　Closely held MG Rover, the maker of MG sports cars, appointed PricewaterhouseCoopers LLP as administrator on April 8 after the company ran out of cash and Shanghai Automotive ended alliance talks.

　　Blair, who faces re-election on May 5, said last week that an agreement with the Chinese carmaker is still possible.

　　Shanghai Automotive Industry Corp may be the best option for MG Rover, company and union officials said on Monday.

　　The company is losing as much as 25 million pounds (US$47 million) a month as sales fall.

　　"We are going to carry on trying to contact Shanghai Auto," said Tony Lomas, one of the administrators, at a press conference yesterday at MG Rover's Longbridge, England car plant.

　　"We are hopeful we will get an audience to explore whether they are still interested."

　　Separately, MG Rover Group Ltd directors pledged assets worth as much as 49 million pounds to help administrators of the carmaker pay wages and stop them from liquidating the company.

　　The four directors of Phoenix Venture Holdings Ltd, MG Rover's parent company, offered Phoenix assets including a home and conference center, in a letter to administrator PricewaterhouseCoopers LLP, MG Rover spokesman Daniel Ward said in a phone interview.

　　"The Phoenix directors are pledging this money to the administrators so they can use it in the best interests of the workforce," Ward said.

　　MG Rover Chairman John Towers and Phoenix directors have been criticized by the Transport and General Workers Union for a 13 million pound pension fund that mainly benefits the directors.

　　"There are a number of challenges that need to be resolved before we can get to a position where the directors can commit to their offer," said Jon Bunn, a PricewaterhouseCoopers spokesman, without giving further details.

　　"We have asked the directors to explore these."

　　The administrators said on Sunday they are trying to revive talks with Shanghai Automotive to sell MG Rover as a going concern.

　　(Bloomberg News)