Jaguar and Land Rover bids expected

19-07-2007

Jaguar and Land Rover bids expected
Ford is expected to receive a number of initial takeover bids for its British-based Jaguar and Land Rover brands today.

The development follows the expiration of a deadline for potential buyers to approach the American company and declare their interest in purchasing the luxury carmakers.

Up to six indicative bids for Jaguar and Land Rover may be received by Ford, the Financial Times reports, with bidders expected to include several private equity groups.

Investment group Cerberus Capital Management, which bought the Chrysler Group from DaimlerChrysler in May, is thought to be one of those planning to make an offer, according to sources cited in the New York Times.

Other bidders may include Ripplewood Holdings, a group headed by former Chrysler president Thomas Stallkamp.

Reports also suggest that Tata Motors, India's biggest carmaker, may also be considering making a joint bid with Fiat or another acquisition partner.

However analysts believe that a private equity sale is the most likely outcome, with Ford set to choose final bidders for Jaguar and Land Rover next month.

Commentators believe the US company is planning to sell its British-based luxury car firms in order to secure the rest of its business in the face of falling sales and profits.

However such a sale would be likely to cause controversy, with trade unions having already expressed concern about what impact a disposal would have on staff at their UK factories.

Jaguar currently employs around 10,000 staff at sites in Coventry, Birmingham and Liverpool, while Land Rover employs around 9,000 in the West Midlands and Warwickshire. The prospect of a possible private equity sale has prompted fears about possible redundancies at the sites.



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