BMW Moves to Quash Reported Volkswagen Bid for Rolls-Royce

Angered by a report Volkswagen still wants to buy Rolls-Royce, German auto maker BMW on Tuesday warned it would stop delivering parts to the British auto maker if its parent company sells it to anyone other than BMW.

Rolls-Royce parent Vickers said Monday it had accepted a $570-million bid from BMW--which already supplies engines for the latest Rolls-Royce models.

Vickers shareholders are expected to vote on the deal in May.

Rival bidders Volkswagen and two consortiums, including a group of Rolls enthusiasts who want to keep the company British, are hoping the shareholders reject the purchase.

The German newspaper Bild said Tuesday that Volkswagen still was in the running.

Bild quoted Volkswagen Chief Ferdinand Piech as saying his company would pay as much as $940 million for Rolls-Royce, up more than $100 million from its previous reported bid.

A Volkswagen spokesman declined to comment on the report--but BMW Chief Bernd Pischetsrieder took it seriously.

The BMW boss said his company would withhold engines destined for the latest Rolls and Bentley models if Vickers accepts a bid from Volkswagen or any other suitor.

Currently, about 30% of each Rolls-Royce car is made up of BMW components. If another bidder wins out, BMW will “stop deliveries on short notice,” Pischetsrieder said at a news conference in Munich.