Russian carmaker RusPromAvto, controlled by tycoon Oleg Deripaska, yesterday distanced itself from the speculation that it wanted to take over collapsed British carmaker MG Rover.

"RusPromAvto's leadership has not held and does not plan to hold any negotiations on this matter," it said in a statement posted on its website.

British media have reported that Mr Deripaska, as well Nikolai Smolensky, who bought British sports car maker TVR last year, were considering bidding for the century-old carmaker.

Mr Deripaska himself and Mr Smolensky were not available for comment. Mr Deripaska's industrial holding, Basic Element, declined a comment.

Rover, once famous for its iconic Mini and the Land Rover, collapsed two weeks ago after it ran out of cash and failed to secure a rescue deal with China's Shanghai Automotive Industry Corp. (SAIC).

The collapse resulted in 5,000 redundancies and an embarrassment for Tony Blair's ruling Labour party as it campaigns for tomorrow's general election on the back of its economic record.

RusPromAvto's Deputy Chairman Alexander Yushkevich was quoted as telling a St Petersburg paper: "A decision will be taken once a valuation of the bankrupt English company has been completed, which could take about a year." The RusPromAvto statement said his comments were not specific.

"Alexander Yushkevich's comments were only of a general nature, which he made as an expert on the automobile industry, and they have nothing to do with RusPromAvto's concrete intentions in this sector," the Russian company said.