A rumoured Volkswagen bid of £370m for Rolls-Royce Motor Cars would not equal the total value of the bid from BMW, Rolls-Royce owner Vickers said this week.
The company said it was not talking to Volkswagen about the Rolls-Royce sale.
‘We are in exclusive negotiations with BMW and we are not in a position to consider any unsolicited bids,’ Vickers said.
The exclusive talks period ends next Thursday.
A shareholders’ extraordinary general meeting about the bid will be held at the end of May or the beginning of June.
The BMW deal in its entirety works out at about £400m, said Vickers.
This is £30m more than VW’s rumoured improved bid and £60m more than the initially quoted cash value of the BMW deal.
It includes money that BMW would have to pay Vickers for investment in Rolls-Royce Motor Cars up to the sale’s conclusion, and also includes the value Vickers gains from retaining Vickers Pressings and Vickers Specialist Engines.
If tomorrow’s meeting of VW’s board votes to support its increased offer for Rolls-Royce, VW has a window of opportunity to put in a better offer between 30 April and the time of the Vickers EGM a month later.