Ford earlier this month named Tata as the preferred bidder for Jaguar and Land Rover after an auction that dragged on for more than six months. As the sale process seemed to stall, some predicted that the automaker would be forced to retain a minority interest in Jaguar and Land Rover at least until the units complete a turnaround. However, India's Economic Times reported Wednesday that Tata now appears likely to take full control. The paper said that though unions at Jaguar and Land Rover had hoped for Ford's continued involvement to ensure continued production at British plants, Ford would prefer not to go through the hassle of a partial spinoff and would rather raise as much capital as possible to fund its domestic turnaround.
The companies have attached no timetable to the negotiations, but there are signs that talks are progressing. The Times, citing unnamed sources, said Tata with the help of advisers Citigroup Inc. and J.P. Morgan is in talks with Calyon Bank, Standard Charter Bank, ABN Amro Bank NV and others about raising upwards of $1.7 billion to finance a deal. - Lou Whiteman
See TheDeal.com story on Ford naming Tata as the preferred bidder
See Economic Times story updating the negotiations
See Dealwatch: Ford Motor Co.
