Mahindra, Tata bids at finish line
Tata Motors and Mahindra & Mahindra enter the last lap to acquire legendary British car brands, Jaguar and Land Rover, reports Indulal PM.autos Updated: Dec 05, 2007 23:15 IST
The New Year promises to be exciting for Indian auto majors. Tata Motors and Mahindra & Mahindra have entered the last lap to acquire legendary British car brands, Jaguar and Land Rover. They were due to place their final bids the management of Ford Motor Company late on Wednesday.
The final bids are placed after two rounds of indicative bids and the quoted prices are not subject to further changes. The bidders, which also include US-based private equity firm One Equity Partners, are likely to quote an offer price in the range $1.7-2.2 billion (Rs 6,800 crore to Rs 8,800 crore.) according to investment banking sources.
M&M is expected to place a joint bid with US-based private equity firm Apollo Capital. A Tata Motors spokesperson refused to comment on the issue. M&M also declined to comment.
Ford and its advisors — Goldman Sachs, HSBC and Morgan Stanley — have asked the bidders to place the value-adjusted confirmation bid by Wednesday, according to sources close to the development.
“Ford is expected to consider these bids later next week and the buyer will be announced by the end of this year,” said a source close to the transaction. Earlier this year, Ford put on the block Jaguar and Land Rover brands on account of their falling revenues.
According to analysts, the acquisition will enable Indian players to access superior technology. “The immediate benefit will be access to state-of-the-art technology. Secondly, there can be outsourcing of auto components,” said Chirag Shah of Mumbai-based Emkay Stockbroking.