RR, VW, Cosworth & AUDI

["Mike Del Tergo" <mdeltergo@hotmail.com>]

For those following the fray.
FRANKFURT, June 4 (Reuters) - German car maker Volkswagen AG (VOWG.F) on 
Thursday sweetened its bid for Rolls-Royce Motor Cars by announcing its 
upmarket division Audi would buy Vickers Plc's (quote from Yahoo! UK 
&Ireland: VICK.L) engine maker, Cosworth, but only if VW wins Rolls 
The offer to buy Cosworth is the latest twist in the Rolls takeover saga 
and comes just a day before Vickers shareholders are due to meet and 
decide on which suitor -- Volkswagen or rival BMW AG (BMWG.F) -- 
deserves to win the luxury car maker.

British engineering group Vickers said the deal to sell Cosworth to Audi 
for 120 million pounds ($197 million) underpinned the strength of VW's 
bid, which it had recommended to shareholders.
Audi's letter of intent to purchase Cosworth comes as no surprise as VW 
chairman Ferdinand Piech has said in the past the group would supply its 
own engines for Rolls and he would like to build the replacement engines 
through Cosworth.

Audi's additional offer for Cosworth would swell VW's bid to 550 million 
pounds, far outgunning BMW's.


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