M&M mulls bid for Volvo
After the Tatas got Jaguar and Land Rover, is it the Mahindras turn to get premium Swedish car brand Volvo?autos Updated: Dec 09, 2008 20:14 IST
After the Tatas got Jaguar and Land Rover, is it the Mahindras turn to get premium Swedish car brand Volvo?
Mahindra and Mahindra (M&M) is considering a bid for the brand which, like JLR, has been put on the block by ailing US major Ford, say investment banking sources. “Mahindras are discussing with private equity players including Cerberus Capital and Texas Pacific Group to place a joint bid for Volvo,” said a source familiar with the negotiations.
M&M said in an e-mail that it does not respond to market speculation, while there was no response from Cerberus to an e-mail at the time of writing.
The sources said M&M was looking for an advisor, and had held talks with Standard Chartered and Morgan Stanley, while JP Morgan, which advised Ford, had approached the Mahindras as part of an Asian hunt. Shanghai Automotive Industry Corporation and South Korea’s Hyundai are among other suitors.
Ford had bought Volvo for $6.4 billion in 1999. Though the bid value is not known, international media reports say Ford was eyeing $6 billion for Volvo.