Ford can't afford to let go of Jaguar, Land Rover

RETAINING A LINK: Analysts say Ford may have to retain a significant stake to get a good price.

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Keywords: Private Equity, India

New Delhi: Prospective bidders for Ford's Jaguar and Land Rover brands have reportedly begun due diligence, but the sale may finally go through only in the next two months.

Ford has so far publicly said it is pleased with the expressions of interest it has received and is evaluating the offers in depth. TV18 has learnt that Ford may even retain a minority shareholding in the business.

This is what Ford did when it sold Aston Martin in march this year -- it held on to 15 per cent stake in the company.

Ford Chief Executive, Alan Mulally, had gone on record to say: "We are open to different options, including retaining a minority stake in both operations. We would rather sell the two brands jointly as they were so highly integrated."

However, Ford's production links with Land Rover and Jaguar are far more interwoven and analysts say Ford may have to retain a significant stake to get a good price.

Union leaders have urged the Government to block any sale to a private equity bidder, fearful that such a move could lead to widespread job losses.

Ford had received preliminary bids from some private-equity firms including TPG, Cerberus Capital Management, Ripplewood Holdings and One Equity Partners apart from two Indian auto manufacturers -- M&M and Tata Motors.