GERMAN car giant BMW is upping its stake in aero engines group Rolls-Royce which employs more than 1,000 people in Pendle.

BMW today announced it is increasing its stake from two per cent to just over 10 per cent.

The move is part of a wider deal between the two companies over their shared aero engines business.

In return for the newly issued shares, Rolls-Royce will take full control of BMW Rolls-Royce, a German-based joint-venture.

BMW Rolls-Royce, currently 50.5 per cent owned by BMW, makes the BR700 range of aircraft engines used in regional airliners such as the Boeing 717.

Rolls-Royce's Barnoldswick site manufactures components including fan blades for engines.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.