Lotus attempts to play down reports of bid by Proton chief

Mystery hangs over the future of Lotus Cars, the sportscar maker, after one of Malaysia's richest tycoons last week was said to be on the brink of buying the British company.

Lotus denied reports in Asia that Malaysia's national car maker, Proton, was on the verge of concluding a deal to acquire 80 per cent of the company in exchange for GBP53 million (about HK$654 million) and an agreement to assume part of Lotus's debt.

However, it was clear the man behind Proton, Yahaya Ahmad, a 50-year-old millionaire, had been involved in detailed discussions with Romano Artioli, the Italian entrepreneur who bought Lotus in 1993.

The luxury marque has returned to profit but is affected by Mr Artioli's problems with the Bugatti car business. Lotus says it is seeking an investor or partner, not a buyer. Proton is interested particularly in Lotus's highly rated design engineering arm.

Proton has provided the latest twist in a saga that has seen boardroom sackings by Mr Artioli and a flurry of rumours that has left employees and people connected with the business in confusion.

In Malaysia, Mr Ahmad is one of the biggest players in a circle of businessmen on excellent terms with Mahathir Mohammed, the country's long-serving prime minister. Mr Ahmad's flagship company, the DRB-Hicom group, holds a controlling interest in Proton, or Perusahaan Otomobil Na_ sional.