Bloomberg News

BMW Takes 15.7% Stake in SGL, May Buy Stock at Favorable Price

December 22, 2011

Dec. 22 (Bloomberg) -- Bayerische Motoren Werke AG, the world’s biggest maker of luxury cars, bought a 15.7 percent stake in lightweight-materials partner SGL Carbon SE and said it may add to the holding depending on the shares’ performance.

BMW owned the stake as of Dec. 20 and has said it doesn’t plan on any board or strategy changes, Wiesbaden, Germany-based SGL said today in a statement. The car manufacturer doesn’t plan to increase the holding for the next 12 months, though it may buy stock in the event of a “favorable opportunity” or to prevent dilution of its voting rights, SGL said.

The automaker, based in Munich, said on Nov. 18 that it had secured a 15.16 percent stake in SGL, the world’s largest maker of carbon and graphite products. The companies have a $100 million joint-venture plant near Seattle that produces carbon fibers for car-body composites. Volkswagen AG, Europe’s biggest carmaker and the owner of BMW competitor Audi, also holds a stake in SGL.

SGL fell as much as 4.3 percent to 37.89 euros, the lowest intraday price since Oct. 14, and was down 4 percent at 1:10 p.m. in Frankfurt. That pared the stock’s gain this year to 41 percent. BMW rose 0.5 percent to 52.78 euros.

The biggest shareholder in SGL is SKion GmbH, an investment vehicle of Susanne Klatten, a member of the Quandt family that owns 47 percent of BMW. The SKion and BMW holdings are legally separate, with no pooling planned, a spokesman for Klatten said on Nov. 18.

--Editors: Thomas Mulier, Benedikt Kammel

To contact the reporter on this story: Tom Lavell in Frankfurt at tlavell@bloomberg.net.

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net.


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