DID a team of negotiators really sign away the MG Rover family silver after a boozy late night drinking session? That was certainly the impression given on ITV's Tonight With Trevor MacDonald.

Peter Stevens, an MGR director and the man brought in to "sex-up" the range after the company was sold by BMW, told the programme he was at the meeting held in China last year when Rover bosses met a team from would-be partner Shanghai Automotive (SAIC).

In the TV interview, he claimed the British delegation was invited to an evening meal where the drink flowed. After a while, he claimed a strange thought occurred to him - only the British were drinking. Their Chinese hosts appeared to be knocking it back but, in reality, they were not touching a drop.

Whatever his comments, it seems inconceivable that a skilled negotiating team should fall into such an obvious trap.

Especially one representing a company that - to use a familiar term - was already drinking in the last chance saloon.

Nor would the deal have been done before every last line was checked by a team of accountants.

MG Rover engaged a highly respected team from Eversheds to draw up the contract back in the UK. The British negotiators didnot just tip up in China, pens poised to sign on the dotted line no matter what.

But the deal gave SAIC exclusive rights to the 25 and 75 cars in return for £67m.

And, as Jon Moulton, the venture capitalist who once tried to buy MG Rover, told the programme: "Two parties were at that negotiating table. One came away with a victory and one came away with a defeat. I leave it up to you to make your own mind up who got what."

Officially, MG Rover's bosses have declined to comment on the story. They gave ITV a terse statement saying how proud they had been to sustain 6,000 jobs for five years and how close they had come to signing the Chinese deal. In other words, they said nothing new.

Certainly, the Chinese are now holding a deck of cards stacked with aces.

They have the manufacturing rights to key models for £67m - less than a tenth of what it cost to develop the cars - and didn't have to invest the £250m or so in the ailing Longbridge plant.

A team of administrators flies to Shanghai this month to begin negotiations with SAIC. Assuming they do so with a clear head, the plan is to see how much the Chinese are willing to pay for what is left of the British company.

Essentially, Rover is dead. The Chinese are just picking over the carcass. One intriguing titbit that came out of the programme was just how close MGR were to pulling off a deal with Fiat.

The two companies were planning a joint venture to build a medium-sized car when a team from Britain was invited to the impressive Fiat headquarters. As they walked in, Mr Stevens said one boss turned to him and said: "What are we doing here?"

He thought the Brits were overawed by Fiat's sheer size - ironically the tables had once been reversed - and got cold feet.

Perhaps they feared a small company like MGR would be swallowed up by a colossus like Fiat? Whatever the reason, it seems one possible deal was allowed to whither and die.

How ironic, then, that Fiat is now the manufacturer feeling the chill prospect of takeover - or worse.

Grappling with massive debts, the Italian group is said to have been targeted by none other than Shanghai Automotive.

One thing you can be certain of is that the Italians won't make the same mistakes as the British.