Carmakers Deny F-1 Takeover Talks

MUNICH, July 10 Reuters is reporting that carmakers involved in Formula One racing are not in talks with banks on taking over a stake in the event's marketing organisation following the demise of German media group Kirch, a BMW board member said.

The carmakers, which include BMW and DaimlerChrysler's luxury Mercedes unit, have said they will set up a rival to Formula One in 2008 to gain more control over the sport, but Kirch's insolvency has prompted speculation they may step into the running of F1 itself.

One of Kirch's creditor banks, partly state-owned BayernLB, said on Sunday it and other creditor banks were poised to swap $1.6 billion in loans to Kirch for a 75 percent stake in the Formula One business.

"There are no talks with the banks," BMW board member Burkhard Goeschel told reporters in Munich late on Tuesday. "The carmakers have got endless amounts of time. We are not under pressure."