BMW considers buying Ford’s Volvo
At least two reports in European media outlets suggested that Ford was in discussions with Germany’s BMW regarding the possible sale of Volvo, which has its headquarters in Sweden.
In a statement released Tuesday ,officials at the Dearborn automaker said, “Ford Motor Co. is not in discussions with BMW or any other company regarding an interest in the Volvo Car Corp. We have seen this kind of speculation for the past year, as Ford Motor Co. has been assessing our operations and portfolio – as any good company does and we will continue to do."
05/29/07 Bayerische Motoren Werke AG is considering buying Ford Motor Co.'s Volvo Cars unit, according to a report on the Financial Times' Mergermarket Web site.
On the report, shares of BMW rose 1.7 percent, or 85 cents, to 50.60 euros in Frankfurt, putting the company's value at about 32.8 billion euros ($44.2 billion).
BMW has reviewed Volvo Cars' financial data and is "exploring" an acquisition of the Swedish unit, the Mergermarket Web site said late on Friday. The reported cited unidentified people "close to the situation." Other companies have also reviewed Volvo's finances, the Financial Times site said.
Marc Hassinger, a spokesman at Munich-based BMW, declined today to comment on the report, according to Bloomberg News. Tom Hoyt, a spokesman for Ford, told Bloomberg on Friday that "the report is speculation and we don't comment on speculation."
Ford, seeking to raise cash after last year's record loss, in March announced a plan to sell its Aston Martin luxury sports-car unit for $848 million to investors led by U.K. auto- racing champion David Richards. Aston Martin has been part of Ford's Premium Automotive Group luxury division along with the Volvo Cars, Jaguar and Land Rover brands.