Proton to sell Lotus?

An unknown Malaysian automaker has approached Proton Holdings about the sale of its Lotus brand, a new report finds. Proton purchased a 63.75% stake in the British automaker in 1996 for $81 million. Lotus is best known for its light-weight sports cars and its auto engineering consultancy.

Proton had been in negotiations with Volkswagen about a possible alliance, but the deal collapsed and talks were suspended last month. Since the falling out, Proton's stock has tumbled nearly 25%.

"It is believed the interested party...expressed a desire for the controlling stake in the high-performance engine manufacturer after the failure of Proton-Volkswagen partnership talks late this year," the Malaysian Reserve said.

The newspaper failed to mention a bidder or the value of the takeover.