Unions sore over Ford's plans to sell

Our Corporate Bureau
16 June 2007

Mumbai: Union officials and lawmakers are worried that a possible acquisition of Ford Motor Co.'s UK units, Jaguar and Land Rover, by buyout firms will cut jobs and sully the image of iconic brands.

Dearborn, Michigan-based Ford said it was exploring strategic options for the two brands. The company has hired Goldman, Sachs & Co., HSBC Holding Plc and Morgan Stanley to advise on the sale.

Private equity firms Apollo Management LP, Cerberus Capital Management LP and Blackstone Group LP are interested in taking control of the two auto units, while the other firms did not return calls, according to the Independent.

Another equity firm, Alchemy Partners, also confirmed its interest in the assets, although it denied any imminent bid plans. The firm is too small to bid alone and may consider joining a consortium.

The firm had earlier made an attempt to acquire MG Rover Group Ltd in 2000 from BMW AG, but at that time two-thirds of the company's work force had to be fired and the historic MG business needed to be sold.