Did some research on the topic and found the following:
The first (petrol) cars compliant with EOBD in Europe are of model year 2000.
You wouldn't need a converter cable as these then have the 16-pin J1962 connector.
Here's a link to the website of a German reseller of scanner equipment.
They have a database of actual tested vehicles (with or without converter cables).
It's a bi-lingual page and all you have to do is select BMW and the model year.
http://www.obd-2.de/tech_kom.php
They couldn't find any car that works in 1996 - 1998. They found some 1999 (build) cars that did work.
This is the experience of a UK user who actually tried the converter cable:
http://www.thebmwforum.com/bmw-3-ser...bd-ii-t142.htm
I am afraid that for purposes of reading with generic scanners this cable is useless.
Why are these cables produced then?
Some professional scanners like the Carmanscan are default equipped with the 16-pin J1962 connector. To connect to other sockets they use a converter. Probably because it's cheaper that way.
To provide people with a cheap interface for unauthorised software like BMW's INPA.