MG Rover in Malaysia talks

CARMAKER MG Rover is exploring a tie-up with Malaysia's Proton, the head of the State-linked Asian group has said.

Mahaleel Ariff, chief executive at Perusahaan Otomobil National (Proton), said the company was in talks with three foreign groups, including the Birmingham-based company.

The link could include 'technical exchanges' with Proton supplying car platforms to MG Rover, Mahaleel said. It could lead to a more fundamental alliance as Proton is seeking a foreign partner to offset rising competition in its home market, analysts say.