Tata set to drive away in Jaguar, Land Rover

[Sourav]

From The Hindustan Times

India Inc is shopping in style. Car makers Ford is set to announce the Tata Group as the preferred bidder for its iconic Jaguar and Land Rover within a fortnight, according to insiders in the deal. The deal is likely to be inked for £1 billion.

The Sunday Times, UK, reported on December 16 that the Tatas are likely to be declared the winners within a fortnight.

Ford’s picking Tata would be historic because it would be the first time a major Western car group is bought by an Indian company.
Last week, three bidders — the Tatas, Mahindras and American buyout group One Equity — were left in the race. It was reported that the trade unions had favoured the Tatas with 46 per cent backing and that strengthened their chances of emerging as the most favoured. Jaguar and Land Rover operations in Britain are based in Wales, and so are some factories of steel giant Corus, which Tata recently bought.

A Welsh government spokesperson told HT that the news was most welcome. “We are very happy with the group here. We hope that more business will come as the Tatas are expected to set up more units for components of the cars. It will boost employment here.” She said the Corus trade unions were satisfied with the management.

The deal is said to be for about £1 billion but the exact amount could change once Tata is declared the preferred bidder. Tata sources refused to comment. But Tatas may have to negotiate a settlement with the pension trustees and also ensure that Ford continues to maintain regular supply of components and engines.

[Sourav]

Ford To Select India's Tata As Preferred Bidder For Jaguar, Land Rover Brands

From rttnews.com

India's automobile giant Tata Motors Ltd (TTM) is all set to win auction for Jaguar and Land Rover brands of Ford Motor Co. (F), reports Sunday Times of Britain. The report suggested that Ford would name Tata as preferred bidder for the UK's most celebrated brands.

Ford decided to sell off its dear brands to re-establish financial health and will officially declare its preference within a fortnight. Jaguar and Land Rover together has employee strength of 15,000. Ford owned Jaguar in 1989 and Land Rover in 2000.

The auction process that started around six months back short-listed Tata and its Indian rival Mahindra along with One Equity, an American buyout group. The strike price for the deal is expected to be one million pounds and the final consideration will be revealed after the signing of the agreement.

The Tata Group is one of India's largest business conglomerates, with revenues of US$ 28.8 billion. Tata Motors Limited reported revenues of US$ 7.2 billion in 2006-07. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. In the UK, Tata Group have 18 companies and 4,000 employees.

Prior to reaching agreement with Ford, the company plans to negotiate a settlement with pension trustees. In addition, Tata will have to ensure continued supply of engines and other components from Ford.

Sunday Times noted that Tata would retain all the three factories in Solihull, Castle Bromwich in the Midlands and Halewood on Merseyside.

Ford finished on Friday at $6.89, down $0.10 or 1.43% on a volume of 39.316 million shares. TTM finished Friday's regular trading at $18.49, down $0.37 or 1.96% on a volume of 534K shares.