I had an E36 328i go for it off the lights next to me a few weeks ago. Both of us were being really cautious and didnt go for it right away - we both crept off the line and then simultaneously gave it more and more power in 1st. By the end of 2nd gear I had pulled a car on him, but slowed as the limit was only 40. I doubt that performance would be repeated at high speed/low revs in a Valver (tuned or not).
I would be surprised if a Mk2 1.6 16v couldnt shake off a BMW 316i. The E36 (including the compact) were powered by a wheezy 1.9 8v offering in the region of 110bhp. Even the newest 1.6 16vs dont make much more power in their even heavier bodies. I have very little time for 316/318s - but they go progressively up in my estimation as the engines get bigger. Theres no doubt that a E36 323/5/8i or E46 330i is home to a fine engine (and probably a t**ser in the drivers seat). 90% of the most crazed, dangerous and plain stupid drivers I see are at the wheel of a BM.