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Rolls-Royce up for sale
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October 27, 1997: 8:36 a.m. ET
Vickers plans to sell subsidiary to concentrate on defense units
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NEW YORK (CNNfn) - British engineering company Vickers PLC said Monday it is putting its Rolls-Royce Motor Cars Ltd. subsidiary up for sale.
The company has retained Lazard Brothers & Co. Ltd. as financial advisor on the sale.
Vickers chairman Colin Chandler said in a statement that the company, which has owned Rolls-Royce since 1979, believes now is the right time to explore a sale.
"We believe this is now in the best interests of both Vickers' shareholders and the Rolls-Royce Motor Cars business.
"This is the next step in Vickers PLC's stated strategy of focusing its portfolio of businesses in order to concentrate management and financial resources for the group's future development," he said.
He predicted there would be considerable interest among luxury automobile makers.
"There has been a growing number of companies expressing interest in Rolls-Royce Motor Cars. Early indications are that today's initiative will generate considerable interest among the leading players in the luxury automotive segment who are capable of continuing to develop this premier business," he said.
One likely suitor is luxury auto maker BMW, whose chairman, Bernd Pischetsrieder, said in March that Rolls-Royce would make a good fit. However, he said, BMW would pursue a deal only if it made sense economically.
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