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Daimler, Rolls-Royce May Buy Supplier

Automaker and British engine maker Rolls-Royce are in talks about possibility of jointly taking majority share in German engine supplier Tognum.

BERLIN (AP) -- Car maker Daimler AG says it and British engine maker Rolls-Royce are in talks about the possibility of jointly taking a majority share in Tognum AG, a German engine supplier.

Daimler said Monday that the two companies are in "constructive discussions" with Tognum's management and supervisory boards. It did not specify how large a stake they envision taking but said they would do so "in equal shares."

Daimler already holds 28.4 percent of Tognum, which supplies engines for ships, trains and power generators among other machines.

Shares of Daimler were up 1.4 percent at €48.89 ($68.36) in Frankfurt. Tognum's shares soared 21.1 percent to €22.41.