Audi works to finalize details of deal to buy Lamborghini SpA
Audi works to finalize details of deal to buy Lamborghini SpA
FRANKFURT (Reuters): Germany's Volkswagen AG continued its automotive shopping spree yesterday when its Audi AG subsidiary snapped up the Italian high-performance sports car maker Lamborghini SpA.
Europe's biggest car maker said that it had signed a letter of intent to take over the Bologna-based Lamborghini, which is 60 percent owned Hutomo "Tommy" Mandala Putra, the youngest son of former Indonesian president Soeharto, and 40 percent by Malaysia's Mycom.
Audi hoped to finalize details and close the sale in coming weeks. Just how much Audi paid for the firm is unknown.
"Audi is dealing with both owners and wants to take over the whole of Lamborghini," a spokesman for Audi told Reuters.
He added Audi had been approached by Lamborghini's owners with a view of VW buying the company.
The Lamborghini purchase came hard on the heels of VW's successful bid for the luxury car maker Rolls Royce Motor Cars last week.
VW's decision to buy Lamborghini did not come as a surprise to car industry analysts, who had speculated that VW might be interested after the management board chairman of VW, Ferdinand Piech, said he was looking at possible luxury acquisitions.
The stockmarket did not respond particularly well to the news and shares in VW fell more than one percent on the news. But the shares still outperformed the Xetra DAX index which was down 1.35 percent at the same time.
"I think it might be a little too much for them to try and integrate two car makers simultaneously. To successfully do both is going to cost both time and nerves," he said.
Earlier this month, Soeharto denied reports that he planned to sell his stake to gain a fresh injection of funds for his PT Timor Putra Nasional car company.
At the same time Mycom said it was looking to sell its stake.
Audi would become much more international through the purchase of Lamborghini, while the purchase of the marque would play a major role in completing Audi's range of luxury sports cars, the Audi spokesman said.
Lamborghini sold around 200 cars last year, mainly its "Diablo" model.
Audi saw the purchase as a "long-term investment" and said it would operate Lamborghini as a wholly owned foreign subsidiary, along the lines of its Hungarian unit Audi Hungaria Motor Kft, within the parent structure.
The spokesman said that similar negotiations were going on with engine maker Cosworth, which it said earlier this month it would take over from Vickers Plc.