Ford eyes Cosworth

FORD has started talks with Vickers about buying a big stake in its specialist engines and engineering arm, Cosworth, according to weekend reports. Volkswagen also wants Cosworth and is expected this week to bid pounds 430m for Rolls-Royce Motors in an attempt to defeat BMW's pounds 340m agreed offer.

VW has signalled it may be prepared to pay up to pounds 170m for Cosworth, but analysts believe Vickers does not want to sell to the German group. The German magazine Der Spiegel reported on Saturday that the management of Vickers was considering VW's increased offer, which amounted to pounds 400m for Rolls and pounds 100m for the engine manufacturer Cosworth.