Tuesday October 26th, 1999

Bernie Ecclestone closed a deal today to sell 50% of his shares in Formula One management to Deutsche Bank's Morgan Grenfell Private Equity in a $1.3 billion deal. In a report in the Financial Times, Morgan Grenfell said it had agreed to buy 12.5%t of Formula One Holdings, which owns grand prix broadcasting rights, and would bring in other investors to take the holding to 50% over the next few weeks.

Morgan Grenfell, which owns half of the Arrows F1 team, has reportedly turned to the Benetton clothing family, owners of the Benetton F1 team, to join the deal as well. A speaker for Morgan Grenfell Private Equity said the agreement with Ecclestone will see floatation plans of F1 Holdings back on track, and executed within 2-3 years.