OCTOBER 12, 2005
A change of control in F1
The Bayerische Landesbank has taken sole control of the Speed Investments Ltd, the company which controls the commercial rights of Formula 1 motor racing. The group includes Formula One Asset Management Ltd, Formula One World Championship Ltd, Formula One Holding Ltd, Formula One Administration Ltd, Petara Ltd. (Jersey), Formula One Management Ltd, Formula One Licensing BV, Formula One Productions Ltd, Formula One World Travel Ltd, Mirren Holdings Ltd and Formula 1.com Ltd. The agreement terminates the Memorandum of Cooperation between the three banks. It has been cleared by the European Commission Competition Directorate.
The deal means that the two smaller banks involved - Lehmann Brothers and JP Morgan Chase - have left the sport. This makes sense as they have both already written off their investment in F1 and would probably be keen to get the risk off their books. The deal also makes sense for Bayerische Landesbank as it means that a deal with a third party would be easier and will probably mean that the bank will get more of its money back in the longer term.
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