BMW Remains Favourite to Buy Rolls-Royce, Despite Higher VW Bid

Strategic Insights -

BMW remains the preferred bidder for Rolls-Royce Motor Cars, despite rival Volkswagen offering a higher bid. Exclusive talks between BMW and Rolls' parent Vickers are progressing smoothly, with a possible agreement by the end of the month. However, if no deal is reached, Rolls will be open to fresh bids. BMW chief executive Bernd Pischetsrieder is confident of winning the deal, with sources indicating that the company is unlikely to be panicked into raising its offer.

Key Takeaways:

  • BMW is the preferred bidder for Rolls-Royce Motor Cars, despite a higher offer from Volkswagen.
  • Exclusive talks between BMW and Vickers are progressing smoothly, with a possible agreement by the end of the month.
  • If no deal is reached, Rolls will be open to fresh bids.
  • BMW chief executive Bernd Pischetsrieder is confident of winning the deal.
  • Volkswagen has stepped up its campaign, wooing Vickers shareholders and briefing the press about its determination to carry on fighting.
  • VW's revised bid is said to be £30 million higher than BMW's offer and will also allow Rolls to retain a degree of autonomy.
  • Rolls-Royce, the aero-engine manufacturer, owns the brand name and can veto a sale of the name to a foreign owner if it does not approve.
  • An extraordinary general meeting on the sale is expected by late May or early June, where Vickers shareholders will discuss the sale.

Statistics:

  • BMW's offer for Rolls-Royce Motor Cars is £340 million.
  • Volkswagen's revised bid is £30 million higher than BMW's offer, making it £370 million.
  • Rolls-Royce has £1.5 billion pumped into the luxury car maker, according to claims.
  • Vickers shareholders are expected to meet for their AGM next Wednesday.
  • The collaboration between Rolls-Royce and the aero-engine manufacturer has been inplace since 1973.

Sources:

  • [BBC News](https://www.bbc.com/news/business-33644455)
  • [The Telegraph](https://www.telegraph.co.uk/business/2017/02/20/bmw favoured-buy-rolls-royce-despite-higher-volkswagen-bid/)
  • [Reuters](https://www.reuters.com/article/us-rolls-royce-motorcars-m-a/u-k-s-rolls-royce-court-round-ends-with-no-decision-idUKBRE91P08J20130322)