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December 17, 2007 |
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TATA MOTORS: Ford to Name Tata as Preferred Bidder, Report Says Ford Motor Co. is set to name Tata Motors Ltd. as preferred bidder for the Jaguar and Land Rover brands, Dominic O'Connell of United Kingdom's The Sunday Times reports, citing sources close to the negotiations. As previously reported in the Troubled Company Reporter-Asia Pacific, Tata Motors is in the race to buy the two Ford brands. Tata Motors made it to the list of final bidders along with Mahindra & Mahindra in collaboration with buyout firm Apollo, and One Equity Partners LLC. According to Mr. O'Connell, his sources say Ford will make the announcement in the next two weeks. The Sunday Times reports Tata is expected to dole out an estimated GBP1 billion. American dealers of Jaguar recently, however, expressed preference over U.S. firm's One Equity Partners for the luxury car unit, The Wall Street Journal reported. The choice of U.S. dealers, the Journal relates, may have something to do with Jacques Nasser, managing director of One Equity. Mr. Nasser was Ford's CEO from 1999 to 2001, who advocated the investment on Ford's European luxury brands. If Tata, who had the backing of the workers union of the two brands, will be named to drive those brands, it will have to negotiate a settlement with pension trustees and a side deal with Ford over the continued supply of engines and other components, The Times says. India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/ -- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. * * * Standard & Poor's Ratings Services, on July 13, 2007, assigned its 'BB+' issue rating to the proposed US$490 million zero- coupon convertible bonds of India's Tata Motors Ltd. (BB+/Stable/--). The bonds represent a direct, unsecured and unsubordinated obligation of the company. Proceeds from the bonds will be used for capital expenditure, overseas investments, acquisitions, and other general corporate purposes. Moody's Investors Service, on July 26, 2005, gave Tata Motors 'Ba1' long-term corporate family and senior unsecured debt ratings. |
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