An article by Frank Kane and Rupert Steiner in The Sunday Times reported that Bernie Ecclestone has plans to bring Formula One to the stock market in time for the British Grand Prix with a price tag between 1.5 to 2 billion pounds.

The procedure for making Formula One public is being handled by Salomon Brothers, a U.S. investment banking firm. One stockbroker was quoted as saying, "it's on a very tight timetable." A confidential meeting was held last week and final arrangements were being settled and a announcement could be made within days regarding the new organization. Salomon Brothers recently gave the first detailed financial forecasts for Ecclestone and his new company, Formula One Holdings. Turnover for this year is estimated at £200 million, giving a pre-tax profit of £85 million.

Reportedly, there are several changes in place since the first announcement on flotation. 50% of the shares will go public. Formula One Holdings will receive 30% of shares. The rest of the shares will be divided up between teams and track operators.

In a major move, Formula One Holdings has lured Helmut Werner, former head of Mercedes-Benz, as chairman. Ecclestone will be chief executive. Other appointments include Marco Piccinini (sporting director of Ferrari) as deputy chief executive and David Wilson (formerly of Ladbroke) as finance director. Robert Rowley (Reuters' financial director) and Walter Thoma (European head of Philip Morris) are also included at Formula One Holdings as non-executive directors.

In The Sunday Times article, Ecclestone was quoted saying, "It's all progressing nicely and we should have an announcement within the month. I've been going through thousands of meetings with City (London's term for its "Wall Street") people and have come away thinking: 'don't float unless you want to get aggravated.' ...We are restructuring the way business will be run, away from its entrepreneurial basis towards a more transparent business."

Previously, the workings for going public were stalled when Formula One teams were disputing the revised Concorde Agreement. Ecclestone stated, "there is no problem with the teams as we have resolved the dispute and got them united -- it was just some people with large egos. We are negotiating for the teams and promoters to be shareholders." Ecclestone also plans to expand Formula One to Korea and Malaysia next year with China to join later. With these moves, Ecclestone hopes to encourage more drivers from Asia in boosting sponsorship and viewership in those areas.

Ecclestone also is planning the expansion of Formula One Promotions which will include an ambitious merchandising program. He believes the brand value of the Formula One name can generate a theme of restaurants, not unlike the Hard Rock Cafe. "We have been forming a base to expand the merchandising and develop the brand. ...We have also managed to expand our core business -- The number of Grands Prix staged around the world. I have been saying we should 'move east young man', and we are going to be in China, and next year Korea and Malaysia. Things are going nicely for an impending announcement."

The valuation of Formula One Holdings will eventually depend on the pay-per-view scheme for the sport. This would include viewers to switch between in-car cameras much like DF1 (Digital Formula One) subscribers in Germany are privy to. Major flotation of Formula One will exist in London and Frankfurt as the chief markets. Consideration for a Wall Street listing is also being given.

During the Grand Prix of Monaco, British fund managers were courted by Formula One when City experts were flown out as Ecclestone's guests. A similar arrangement will occur for this Sunday's Spanish Grand Prix.

Ian Phillips, commercial director of Jordan Grand Prix, said the new law by the new British government, New Labour, will have an effect on the team. The law which bans tobacco sponsorship. He said: "We have not advertised tobacco in Britain for a few years now because of television. But at the moment it's a gentleman's agreement with the tobacco companies. We abide by what they say and therefore do not show the tobacco names on our cars in Britain."

The marketing director of Benetton,John Postlethwaite, said he did not expect the ban to have any dire effects on Formula One teams. We have been aware of the possibilities for some time. I cannot see it being too serious for the sport as a whole. There are many other sponsors and everyone has a wide spread of sponsors involved."

The Canadian Grand Prix faced a same sort of law earlier this year but finally an amendment ensured that the law didn't concern Formula One.