Cosworth not denying stock market floatation reports
Racing series F1
According to reports in the financial media, F1 engine supplier Cosworth could soon be floated on the stock exchange.
The reports estimated the value of the flotation at about (US) $360 million, following the famous British marque's return to F1 with Williams and all three of the new teams.
Main investors Gerald Forsythe and Kevin Kalkhoven, who bought Cosworth from Ford in 2004, are reportedly considering the move as profits are expected to surge from $2m in 2008 to more than $70m this year.
The reports said auditor Deloitte may have been hired for the initial public offering, and a source admitted that business has picked up dramatically since the company laid off 200 staff when it dropped out of F1 at the end of 2006.
The Northampton Chronicle quoted a spokesman as saying on Tuesday: "As with any company that enjoys a particularly successful period, there is speculation that they will float. Those things go hand in hand."
This sounds like a profitable way to run the company for the current owners. The disadvantage of having to reveal certain figures would probably be more than offset by making some nice cash out of their investment.
Cosworth's F1 engine seems to be competitive or Williams would be changing to Renault power for next year. That means that a public company could become the target of any automotive manufacturer who wants to get into competition engines fast. It could help long term to keep up the stock value.