Rolls-Royce Motor Cars (RRMC) is likely to fall into foreign hands for the first time in its 92 year history despite a last minute takeover approach from Crewe Motors, a consortium of wealthy luxury car enthusiasts who want the group to remain British owned.

Shareholder vote

Shareholders of Vickers, RRMC's parent company, are due to meet at 1000 BST (0900 GMT) Friday morning to vote on the takeover for the group.

At the moment the highest offer on the table is from Volkswagen, Germany's and Europe's largest car maker. It struck a £430m deal with Vickers in April, although the total consideration could be up to £470m to reflect the rise in working capital in the business.

Volkswagen looks to be on the road to victory

Unless Crewe Motors can come up with a much improved, and unconditional, offer to present to Vickers' shareholders at Friday's meeting its takeover approach is likely to flounder.

In other words shareholders in Vickers will probably want the parent company to take the money and run rather than risk waiting for another offer to materialise.

Vickers has promised a large pay out to investors from the proceeds of the disposal, equivalent to at least 80p a share.

Crewe bid facing difficulties

Michael Shrimpton, the Bentley driving barrister who is leading Crewe Motors audacious takeover attempt, is now racing against the clock to come up with a firm bid. But he could be fighting a losing battle.

Reports suggest the consortium faces an uphill struggle to arrange financing for the deal in time for the meeting.

Vickers does not want to postpone the shareholder meeting as that could delay the final sale of the business until September.

Corporate soap opera

The sale of Rolls-Royce has sparked a war between Germany's car giants. Vickers put the business up for sale last October and Volkswagen made an initial offer, believed to have been around £315m, in January.

Rolls-Royce production is likely to increase dramatically whoever wins

Its arch rival BMW, which already owns British car group Rover, entered the fray in March, offering £340m for the group. But Volkswagen fired back just weeks later with what analysts considered to be a knock-out £430m bid.

But if Crewe Motors manages to muster a bid there could be yet another chapter to this long running saga. Volkswagen is determined to win and has been tipped to increase its offer further if necessary.

Legal battle looming

Even if Volkswagen sees off rival bidders, its problems are not over. The rights to the Rolls-Royce name are still owned by the quoted engineering group with the same name.

Rolls-Royce Plc has strong business links with BMW and had backed the German car group's bid. It is understood to be seeking up to £100m from Volkswagen for the right to use of the famous name, raising the prospect of a legal wrangle between the two companies.

{ Image 3}BMW has also threatened to pull out of its contract to supply engines for the Rolls-Royce cars. But Volkswagen looks to have side-stepped that particular dilemma by agreeing to buy Cosworth, Vickers high performance engine subsidiary, for £120m.

End of an era

RRMC was founded in 1906 by Henry Royce, a Manchester engineer, and Charles Rolls, a millionaire's son. It became part of the Rolls-Royce engineering group before being sold to Vickers for £38m in 1979.

RRMC built a record 3,333 cars in 1990 but sales were hit by the Gulf War and the group crashed to a £100m loss in 1992/3. Since then, however, its financial position has recovered strongly.

It currently produces just under 2,000 vehicles a year and has recently introduced the Silver Seraph, the first new Rolls-Royce for 18 years.