I would be surprised if they didn't pay at least £700 for it. These engines alone usually sell for more than that and then the rest is profit. Of course you need to figure in the labour involved in stripping the car but I can still see a profit at that price.
It's always difficult to consider breaking one of these cars but at least with companies like a8parts on the case other owners may be able to keep their cars running.
It will be interesting to see if they make you an offer.
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Audi S8 D2 2002 88k mls
Ebony pearl effect black. Grey interior.
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