Dec 20: For the second time Tata is ready to clinch another overseas acquisition in the automobile sector most probably on Friday as the sources says that takeover of Ford’s iconic brand Jaguar and Land Rover would be accomplished by Tata. As per the international media reports, speculation is prevalent that Tata will definitely win over its rival competitor.
The UK-based Brinhmingam Post has reported that Tata will be named as the preferred bidder for British brands Jaguar and Land Rover on Friday (Dec 21). It has further reported that the Ford had accepted £1 billion bid made by Tata group for the acquisition of its two luxurious- Jaguar and Land Rover- model.
The Canadian Press also reported that Ford Motors could also vote in favour of Tata Motors and could name it as the “Perfect Bidder” by tomorrow on Friday. Although the final outcome has not come yet, but there is complete chance of winning on Friday the ‘battle of bid’ played among Tata Motors, Mahindra and Mahindra and the American buyout group One Equity. However, a final deal is not expected to be announced till early next year.
“The unnamed sources at Land Rover said, “It is definitely Tata. There is one final meeting and so long as there is no last minute hitches, which are not expected, then an announcement will be made on Friday.” It further said that the final details would be worked out in the next six weeks.
The report also quoted a union official as saying that Mahindra's bid fell flat because of links to a private equity firm as the Indian firm was working with Apollo.
The report also quoted an union official said that Mahindra was linked to a private equity firm as the Indian firm was working with Apollo, that’s why its bid fell.
“When a private equity firm buys a company, the cost of buying it often goes onto the companies books. If anything goes wrong how would you refinance the business?” said Des Quinn, industry officer for the Transport and General Worker’s Union section of Unite.
Tatas reportedly have made a bid of $2.05 billion for the two brands, upsetting rival Mahindra & Mahindra’s bid of $1.9 billion.
Tata has been making passenger cars since 1991, but before it launched the Indica in 1998, it was best known for building trucks. The Indica was seen as revolutionary in India but it has been less well received abroad.
In the very early of the year 2007 in January Tata confirmed its global status by successfully managed to take over steelmaker Corus for $11.3 billion.
Its first overseas automobile acquisition was the takeover of Daewoo Commercial Vehicle Company for $102 million in March 2004.
While the winning of the Jaguar and Land Rover bid is almost finished with just a day remains to mark seal over it, simultaneously the company eyeing on to forge a strategic alliance between one of the group companies – India Hotels and US based hotel chain Oriental Express for $2.5 billion.
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