LONDON, March 30: BMW of Germany is to buy the luxury car makers Rolls-Royce and Bentley for -- 340 million ($571 million), their owner Vickers Plc said on Monday, rejecting a rival bid from Volkswagen.The agreement specifies that Rolls-Royce and Bentley cars will continue to be made in Britain.
The chairman and chief executive of Vickers Plc Colin Chandler said in a statement: "After careful consideration of a number of proposals, the Vickers board believes that BMW's offer for Rolls-Royce motor cars is the most attractive in terms of achieving best value for our shareholders ensuring the continued success of this unique company." Stressing that the cars would stil be made in Britain, he told the BBC: "Britishness is a very important selling picture for them (BMW)." The statement was issued before the London stock market opened. BMW and Volkswagen made their offers last week.
Vickers said that the sale to BMW had been concluded during the weekend and that details had yet to be worked out.
BMW,which was considered the candidate most likely to win control of Rolls-Royce, already makes V-12 engines for the new Rolls-Royce model and had threatened to withhold supplies if rival company won the bidding.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
