Ford seeks more buyers for Jag and Land Rover

An Internet report says Ford, struggling after losing $12.7 billion in ’06, is closer to selling Jaguar and Land Rover as it confirmed a number of “third parties” that submitted bids to buy or take stakes in the British brands.

Reports are that both will be sold as a package.

Word is Ford execs are considering a “soft deadline” that could lure other bidders, none of whom were identified.

Private equity firms such as the One Equity Partners, Cerberus and Ripplewood Holdings are thought to be interested in Land Rover and Jaguar, according to reports in London. However, higher interest rates and the relatively small quantity of cash produced by both high-line British marques could make deals more complicated.

Until recently, automotive assets have been considered cheap in the private equity world; that could change as banks place higher demand on loans required to complete certain deals.

Those submitting bids are believed to be India’s Tata Motors Ltd. and Mahindra & Mahindra Ltd., and Korea’s Hyundai.

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Source:
AutoWeek | Published 08/02/07, 4:31 pm et