ROLLS-ROYCE ON BLOCK; LUXURY AUTOMAKER UP FOR SALE.

Byline: Robert Barr Associated Press 

Rolls-Royce, builder of rolling palaces for the unabashedly rich, was put up for sale Monday - perhaps destined to be a prestigious sideline for one of the world's major automakers.

Rolls-Royce has made cars for monarchs, oil sheiks and movie stars, a Phantom V in psychedelic paint for John Lennon and two cars for V.I. Lenin, the Silver Wraith that took Princess Grace to her wedding with Prince Rainier, and the hearse that carried Princess Diana's body home for burial.

Apart from its size and its massive radiator grill, a Rolls-Royce is instantly identified by ``the Spirit of Ecstasy,'' the sinuous female figure adorning the hood.

Vickers PLC, which acquired Rolls-Royce in 1979, said it was selling it to concentrate on building tanks, howitzers, propulsion systems and Cosworth engines.

``Obviously, it is a shock to one's patriotic feelings, but the most important thing is for Rolls-Royce to keep going,'' said Lord Montagu of Beaulieu, founder of the National Motor Museum.

Andy Chambers, analyst at Societe Generale Strauss Turnbull, estimated the value of Rolls-Royce Motor Cars at 275 million pounds ($450 million), but figured the prestige of the name would raise the sale price above 400 million pounds ($655 million).

Rolls-Royce dates from 1904 when electrical engineer Henry Royce built three cars of his own design. Racing driver Charles Stewart Rolls was so impressed that his London dealership agreed to take as many cars as Royce could build. The two men merged their businesses in 1906 as Rolls-Royce Ltd.

Their creation entered bankruptcy in 1971 and was reorganized into two companies - one building cars and the other making jet engines.

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Photo: (Color) A doorman stands by a Rolls-Royce Silver Spur II as it is backed into London's Jack Barclay Rolls-Royce and Bentley car dealership.

Associated Press