Ford may buy BMW, Honda

AGENCIES

DETROIT, MICHIGAN, JAN 5: Ford Motor Co is expected to announce this week that it is in the process of buying Bayerisch Motoren Werke AG (BMW) of Germany and Honda Motors of Japan, sources close to Ford management said.But in Munich, Germany's spokesman for BMW denied today that Ford had any plan to buy the company. The sources here did not provide details of the financial package, but said that acquisition deals involving a purchase by Ford in stage of BMW, Honda and a computer industry firm with historical ties to the auto industry, had already been struck or were under negotiation.The source said that although a purchase of BMW and Honda would require substantial amounts of cash, the computer entity would be `` small potatoes'' but could give Ford huge advantages in computer technology.

A source, who spoke on condition of anonymity, said that the announcement of part or parts of the deal might be made as early as Friday.

An announcement of a purchase by BMW would be the fist in a three-step acquisitionFord is expected to take to consolidate its global position following the merger in November of Chrysler Corp. And mercedes-benz.That merger resulted in creation of daimlerchrylser ag which has headquarters in the united states and in germany.

Merger talk has been circulating in the industry since the daimlerchrysler deal which began to take shape a year ago.

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