MUNICH-based BMW yesterday quashed speculation that it might improve its #340m bid for Rolls-Royce Motor Cars, trumped last week by a #430m offer from German rival Volkswagen.
BMW chairman Bernd Pischetsrieder stressed to his company's annual meeting that it would not ''withdraw'' or ''change'' its original #340m offer for Rolls-Royce ''under any circumstances''.
''We already said at the end of last year that we would make one offer and we explained that we would stick to that offer. We are sticking to this statement,'' said the BMW chairman, who then added to the confusion by declaring that the fight for Rolls was not over yet.
''We are not defeated,'' he added, reiterating an earlier statement that BMW would continue its fight to acquire Rolls and would stop supplying it with engines if the UK luxury car maker was sold to another bidder.
Aero engines group Rolls-Royce Plc, which claims rights to the Rolls-Royce name, is closely tied to BMW through a joint venture to produce jet engines and could yet spoil VW's bid for Rolls by charging a high premium for rights to the name.
The BMW chairman repeated a statement from Rolls-Royce Plc stating it would not start negotiating rights to the name until Vickers shareholders approved a buyer. ''Rolls-Royce Plc already has reached an agreement with us on this,'' Pischetsrieder said.
Under a 1973 agreement, which pre-dates Vickers' ownership of the car-maker, Rolls-Royce Plc claims rights to veto use of the name if Rolls is sold to an overseas company.
Vickers is awaiting full hearings by the European Commission on whether this 1973 provision is considered anti-competitive under EU law.
Shareholders of Vickers, which owns Rolls-Royce Motors, will now meet in London on June 4 to consider both offers.
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