Tatas set to win race to acquire Jaguar

FORD CHOOSES TATA: If the Tata's win, it will be the first big Western car brand to be bought by an Indian company.

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Keywords: Takeover, Land Rover

New Delhi: The battle is driving to a close. The Tatas are emerging as the clear winners in the fight to acquire Jaguar and Land Rover from Ford Motors.

Sources say the Tata's have made the highest bid of $2.1 billion, outstripping those of Mahindra & Mahindra and American private equity firm, One Equity. The Jaguar & Land Rover trade unions are also endorsing the bid.

General Secretary of the UK's largest trade union, Tony Woodley has said workers do not want the two companies to leave Ford, but if they have to choose between the three bidders, Tata Motors was the best option, seeing its size and experience.

In addition to Tata's size and experience, is an assurance that they will keep the current management and manufacturing base largely intact, he added.

Director Communications Ford Europe, John Gardiner added, "Ford is very pleased both with the level of interest and quality of those interested parties."

Ford is struggling to return to profitability after record $12.7 billion losses last year. Jaguar and Land Rover are the second and third unit to be put on the block. Aston Martin went earlier this year

Says auto industry expert, Paul Horrell, "The auto bidders looking at JLR are not bidders whose businesses cross very much with JLR. They are not making engines, transmissions that go to a Jaguar. In that sense, it doesn't make a lot of difference. But auto bidders, particularly Tata, may have the stomach for it for a long haul in a way that a PE might not."

Tata's recent acquisition of Corus is also easing the way for the Jaguar deal. If the Tata's win, it will be the first big Western car brand to be bought by an Indian company.

(With inputs from Varun Kumar)