wmb acquires RR

[glen <gpowell@acacianet.com>]

BMW to buy Rolls-Royce for $570M

                 LONDON - The German automaker BMW has won the bidding war
                 to take over Rolls-Royce, beating rival Volkswagen and a group of
                 Rolls enthusiasts making a longshot attempt to keep the company
                 British.

                 Vickers PLC, the corporate parent of Rolls-Royce that put the luxury
                 automaker up for sale in October, announced Monday that it has
                 accepted BMW's bid of $570 million.

                 BMW and its closest rival, Volkswagen, had submitted bids last week
                 and Vickers had been expected to decide on a buyer next month.
                 Analysts had predicted Rolls-Royce could fetch up to $670 million.

                 BMW was one of four bidders to make it to the final stage of the
                 bidding, along with Volkswagen, the consortium of Rolls-Royce
                 enthusiasts and British venture capital group Doughty Hanson.

                 Sir Colin Chandler, chairman and chief executive of Vickers, told the
                 British Broadcasting Corp. in a radio interview Monday that the BMW
                 offer was "a very good deal" for Vickers' shareholders.

                 "It will be built in Britain. BMW management recognize that the
                 Britishness of both Rolls Royce and Bentley is an important selling
                 feature for them." Chandler said.

                 By The Associated Press