Volkswagen To Steer Rolls-Royce?

In a surprise reversal, Vickers PLC said Friday it has agreed to sell its Rolls-Royce Motor Cars luxury car division to Volkswagen for 430 million pounds, or $690 million, in cash.

Vickers had previously accepted a lower offer for the prestigious British automotive brand from another German automaker, BMW.

The Volkswagen offer is 90 million pounds, or $144 million, higher than BMW's bid, which Vickers accepted April 29.

Vickers said today it plans to allow its shareholders to decide between the opposing bids at a special meeting June 4 but will recommend the Volkswagen offer.

Shareholders will be asked first to consider the BMW offer should BMW continue to pursue its bid, and then the proposed sale to VW, Vickers said.

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