LUDWIGSBURG, Germany -- BorgWarner may sell parts of the German ignition products supplier Beru, says a former Beru executive.
BorgWarner has agreed to buy controlling ownership of Beru for E621 million.
Former Beru boss Ulrich Rütz says BorgWarner may sell parts of the company to recoup some of that high purchase price.
Beru's automotive business has a wide product range. The spare and accessory parts business could be sold at a good price because it is profitable.
But BorgWarner is likely to keep Beru's diesel technology -- specifically glow plugs -- and sensors.
Beru CEO Marco von Maltzan denied the sell-off rumors.
"This speculation is completely unfounded," he said.
Von Maltzan pointed to several positive factors for Beru if the deal goes through:
BorgWarner, of Chicago, Illinois, USA, is buying about 6.3 million shares of Beru from private investment company Carlyle Group and a group of family shareholders.
BorgWarner expects to close the transaction in January. It will then own 63 percent of Beru stock.