Tatas put in $1.8 bn bid for Jaguar, Land Rover
The Tatas are understood to have placed a $1.8 billion bid to acquire Jaguar and Land Rover, reports Indulal PM.business Updated: Oct 31, 2007 23:17 IST
The Tatas are understood to have placed a $1.8 billion (Rs 7,078 crore) bid to acquire Jaguar and Land Rover, the iconic British car brands. Their owner, US carmaker Ford, put them on the block earlier this year.
Tata Motors had expressed its interest earlier this year to buy the British brands, part of Ford’s Premier Automotive Group, and submitted their bid late on Monday. India's largest automobile company by sales is understood to have put in its bid for the second round of the auction.
Ravi Kant, managing director, Tata Motors, refused to comment on the development at a press conference in Mumbai on Wednesday.
Former Ford President Nick Scheele, along with private equity firm Ripplewood Holdings, and former Ford CEO Jac Nasser, along with One Equity Holdings, Cerberus Capital and TPG Holdings, are also bidding for the brands, according to investment banking sources.
Ford and its advisers Goldman Sachs, HSBC and Morgan Stanley, are expected to examine the bids later this week. Citigroup and JP Morgan are advising the Tatas on the deal.
Mahindra & Mahindra, which had earlier expressed an interest in the buyout, has pulled out of the race.
Ford bought Jaguar in 1989 for £1.8 billion (Rs 13,031.62 crore), but has since struggled with falling sales.
US private equity firm Cerberus Capital, which recently bought out Chrysler from Daimler Chrysler for $7.4 billion, is planning to tie up with Tata Motors.
However, sources close to Bombay House said the Tatas were yet to consider that option.
The Tata group first admitted its interest in Jaguar and Land Rover on August 24, when chairman Ratan Tata said Tata Motors was indeed looking at the two British brands as potential targets.
First Published: Oct 31, 2007 23:14 IST