BMW, Volkswagen consider to buy SNG share

FRANKFURT: Germany's BMW and Volkswagen are both considering buying shares in carbon fibre producer SGL Carbon as the two wrestle for control of the company, Der Spiegel reported, citing top officials at both carmakers.

"We have an essential interest in SGL Carbon," the weekly news magazine quoted a BMW manager as saying.

BMW plans to roll out "i3" electric cars that boast passenger cabins made from carbon fibre-reinforced plastic supplied by SGL.

Weighing half steel the lightness of the shell improves the battery performance and the car's range.

Der Spiegel said BMW was still considering the number of shares it could buy, but added that it made sense to acquire over 20 percent in order to gain majority control over SGL together with billionaire Susanne Klatten, a large shareholder in BMW who owns 29 percent of SGL.

BMW could not be reached for comment.

The magazine added that Volkswagen was considering raising its SGL holding, last reported at 8.2 percent in February.

"If the price is right, we will further increase our stake in SGL," it cited a manager at VW as saying.

Spiegel reported that SGL shareholder Voith, which reported it owns 9.1 percent in September, was closely allied with Volkswagen.

That means all VW needs to do is buy another 7 percent and the two investors would have a blocking minority.

A spokesman for VW said the company did not comment on market speculation, but added that VW had said in the past it had no plans to raise its stake beyond 10 percent.

Copyright Reuters, 2011