Audi to buy Lamborghini

Sat, 25 Jul 1998 | Source: DJ

BONN (Dow Jones): Audi AG, a wholly owned unit of Volkswagen AG, said yesterday it signed a contract to buy Italian sports car manufacturer Lamborghini SpA.

Audi signed a letter of intent to purchase Lamborghini on June 12.

Audi declined to reveal financial details of the transaction.

It said the former owners - Malaysian holding company Mycom Setdeo and Indonesian company V Power Corp. - asked for confidentiality on this issue.

In 1997, Lamborghini had sales of 74 billion Italian lira while net profit was 232 million lira, Audi said in a press release. The company didn't provide comparable data for 1996.

Two weeks ago, Audi reached full agreement to buy the U.K. engine maker Cosworth for 117 million poundsterling

Cosworth is a unit of Vickers PLC (U.VIC), which sold Rolls Royce Motor Cars to Volkswagen on July 3.

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