Audi to buy Lamborghini

Audi to buy Lamborghini

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.