Posted by John on February 17, 1999 at 15:10:34:
General Motors May Buy BMW
MUNICH, Germany (AP) - General Motors will make an offer to buy Bavarian car company BMW in
the next few days, a German newspaper reported Saturday.
Rumors about BMW's future have been swirling since its chairman, Bernd Pischetsrieder, resigned last Friday amid criticism of his handling of BMW's British subsidiary, Rover.
BMW spokesman Joerg Dinner denied the report Saturday in Die Welt newspaper.
``BMW wants to stay independent,'' Dinner said, adding the main shareholder Quandt family remained ''unbroken'' in its support of the company.
General Motors spokesman Dan Jankowski said, ``We wouldn't have any comment on the rumor of the
General Motors was one of the few companies that could afford BMW's price tag of $7 billion to $9 billion, Die Welt noted.
The report comes one day after Der Spiegel newsmagazine reported Volkswagen wanted its subsidiary Audi and BMW to take a 24.9 percent stake in each other. VW would take over the ailing Rover plant in Britain as part of the deal.
BMW denied that report, too, though earlier acknowledged VW has long been interested in acquiring at least a stake in the company.
BMW has invested more than $3.5 billion in Rover since buying it in 1994. Analysts expect Rover to post
a pretax loss of about $590 million for 1998.