It would appear that the buy-out of Formula One by CVC Capital Partners is not as cut and dried as some would have us beleive, indeed the saga looks set to take another twist.

According to reports, the deal - which saw Bernie Ecclestone sell his family trust's 25% stake in F1, and Bayerische Landesbank (BayernLB) - is not entirely legal, because the two other banks which 'owned' F1 - JP Morgan and Lehman Brothers - had the first option on BayernLB's shares, should it ever decide to sell.

It's claimed that the announcement of the sale of BayernLB's shares to CVC, which in turn set up a new company, Alpha Prema, was deliberately timed for the Thanksgiving weekend in order that the American banks could not react. Details issued to the two other banks contained no financial details and that they had to wait until after the holiday before they could sign a confidentiality agreement, and thereby be given details of the sale.

Although JP Morgan and Lehman Brothers had both been seeking to share their interest in F1 for some time - having first aquired the holding, like BayernLB, in the wake of the collapse of German media group Kirsch - both banks now - out of an obligation to shareholders, must now stand back and look at a number of options.

They could find the money to purchase BayernLB's 50 percent, or they could simply go ahead and sell their shareholding to CVC, most likely at a much lower price than previously anticipated. Or, they could hold an open auction in an attempt to see what they sharehlding would be worth on the open market.

Writing for The Business, an on-line business website, Rupert Steiner writes: "CVC thinks the transaction is a done deal, but the American banks privately believe the agreement is worthless. The first the American banks learned about the deal was in a letter. They were furious they had been kept in the dark and denied their legal rights.

"Sources say the American banks are "apoplectic"," he adds, "and will decide over the next five days what action to take. The sources say the banks will seek to ensure that their pre-emption right honoured. If they are successful, the collapse of the CVC deal will be a huge embarrassment for the private equity firm and Bayerische Landesbank."