Magna leads race for Karmann roof unit: sources

DATE: 31 Dec 2009

HAMBURG, At least four suitors are in the race for insolvent German automotive supplier Karmann's roof business, a source close to the situation said, with Canada's Magna International leading the pack.

At least two more bidders -- including financial group Nordwind Capital and supplier Vorwerk Autotec -- are in the hunt, in addition to previously known candidates Magna and CIE Automotive, the source close to the sale process said.

The source was confirming a report by the Financial Times Deutschland newspaper. Karmann's insolvency administrator declined comment.

Several sources familiar with the matter said Magna had the inside track to get the roof business, which would complement Magna's German unit CTS.

Christian Wulff, the premier of Karmann's home state of Lower Saxony, met Magna founder Frank Stronach and co-CEO Siegfried Wolf early this month to discuss a potential sale, a government source said.

Still, a sale to Magna could pose anti-trust issues, the Frankfurter Allgemeine Zeitung reported on Wednesday.

Volkswagen has already bought parts of Karmann and plans to build a new version of the Golf convertible at the former Karmann plant in Osnabrueck from 2011.

(Reporting by Jan Schwartz; Writing by Michael Shields; Editing by Rupert Winchester)

Germany (Reuters)

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