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Automobile industry

Rolls-Royce Owners Bid to Top Volkswagen's Offer for the Prestige Car Manufacturer

Strategic Insights

— 2 min read

A group of Rolls-Royce owners, led by Michael Shrimpton, are working to present a counter-offer to the £430m bid from Volkswagen, hoping to surpass the German carmaker's offer. The meeting of Vickers shareholders, scheduled for Friday, will decide the fate of the UK's most famous marque. The consortium claims to have firm commitments to top VW's offer, plus the necessary funds for further company development over the next three to five years. However, they acknowledge that the necessary documentation to persuade Wall Street banks to release the cash may not be available in time.

Key Takeaways:

  • A millionaires' consortium of Rolls-Royce owners and dealers, led by Michael Shrimpton, is working to present a counter-offer to Volkswagen's £430m bid.
  • The consortium claims to have firm commitments to top VW's offer plus the necessary funds for further company development over the next three to five years.
  • The consortium promises that Vickers shareholders will not have to wait longer than they would from one of the two firm offers already on the table.
  • The consortium faces challenges in getting the necessary documentation to persuade Wall Street banks to release the cash, hoping for an adjournment of the meeting.
  • BMW has close technical agreements with Rolls-Royce plc and has offered to pay Rolls-Royce plc for the trade mark.
  • Volkswagen has promised to retain the existing British management of the motor company and invest up to £2bn in the development of the marque over the next five years.
  • The consortium plans to match BMW's offer to put a director of Rolls-Royce plc on the board and develop a new all-British engine to power future models.
  • The consortium is prepared to offer Vickers an ongoing stake in the Rolls-Royce company.
  • Analysts are concerned that the consortium may not have the resources to guarantee all the investment needed to maintain the long-term independence of the company.

Statistics:

  • £430m: Volkswagen's bid for Rolls-Royce
  • £340m: BMW's bid for Rolls-Royce
  • £2bn: Volkswagen's plans to invest in the development of the marque over the next five years
  • 3-5 years: The timeframe for the consortium's plans to further develop the company
  • 100%: Volkswagen's promise to retain the existing British management of the motor company
  • £bn: The amount Volkswagen plans to invest in the development of the marque over the next five years
  • 4x: Volkswagen's plan to quadruple the current annual output of Rolls-Royce and Bentley cars

Sources:

  • The Independent
  • The Financial Times
  • The Sunday Times

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