Tata seen preferred bidder for Jaguar, Land Rover: report

05 December 2007

Mumbai: Tata Motors, India''s top bus and truck maker and No. 3 car maker, has the edge over rival Mahindra & Mahindra, which is backed by buyout firm Apollo Partners, in the bidding for Ford Motor''s Jaguar and Land Rover brands, reports quoting bankers and analysts said.

Ford is likely to announce the sale of Jaguar and Land Rover by the year-end or early next year and Tata Motors looks the preferred bidder because of its size and its familiarity with the UK market, they say.

Ford has short listed Tata Motors, JP Morgan-backed One Equity Partners and rival Mahindra & Mahindra, along with buyout firm Apollo Partners for the luxury brands.
 
Tata also have an edge because of its comfort level with the unions. Ford''s UK union leaders have backed Tata Motors'' bid on the grounds that workers'' interests would best be served by a partner "with an established presence and background in manufacturing."

Tata has a presence in the UK through its acquisition of Corus Steel and tea firm Tetley and its own global brand Tata Consultancy Services.

Tata Group also does not see the global credit squeeze resulting from the US sub prime crisis as a drag on its acquisition plans.

"So far there hasn''t been any measurable impact on our business," Alan Rosling, executive director of Tata Sons, the holding company of the Tata Group, said at the Reuters India Investment Summit.