The Government will hold talks today to try to secure the future of troubled Birmingham-based van maker LDV.

The Business Department, a management buyout team and two overseas companies interested in investing in the business will be in discussions to find a way of saving the plant which employs 850 workers.

Last night the leader of the management buyout team released a bullish statement insisting that LDV could be saved followed doubts earlier in the day that a deal could be reached.

The company has been pressing the Government for a bridging loan, ranging from £4 million to £40m.

It is understood that LDV, which is owned by Russian firm Gaz, met with officials from Lord Mandelson’s Business Department yesterday.