Volkswagen Challenges Rolls-Royce Sale to BMW

Vickers, the owner of Rolls-Royce, is in a precarious position. Chairman Sir Colin Chandler has announced a deal to sell the company to BMW for £340 million, but Volkswagen has expressed interest in outbidding the German auto giant by as much as 50%. This has raised concerns among Vickers shareholders, who are eager to secure the highest possible price for the iconic motor marque. However, the exclusivity agreement in place between Vickers and BMW is hindering Volkswagen's ability to make a competitive offer. The Birmingham Midshires Building Society has also been affected by a similar exclusivity agreement, which prevented them from considering a more attractive offer from Halifax.

Key Takeaways:

• Vickers has an exclusivity agreement with BMW to sell Rolls-Royce for £340 million, but Volkswagen is prepared to outbid the German auto giant by up to 50%.
• The exclusivity agreement could short-change Vickers shareholders, who may not receive the highest possible price for Rolls-Royce.
• Volkswagen is considering taking its case directly to shareholders in an effort to influence the outcome of the extraordinary meeting needed to vote through the BMW deal.
• Sir Colin Chandler's decision to press ahead with the Rolls-Royce sale may be influenced by Rolls-Royce plc, which has a strong preference for BMW due to joint ventures.
• Vickers shareholders may demand that the company pursues its legal action to try to have Rolls-Royce plc's power of veto over ownership outlawed.

Statistics:

• £340 million: The amount BMW is willing to pay for Rolls-Royce.
• 50%: The potential increase in Volkswagen's bid compared to BMW's offer.
• £: The currency in which the bids are being made.

Sources:

• "The Times", 1998