Jaguar final bids Wednesday
Odds are that Jaguar and Land Rover will be sold to an Indian automaker, though which one isn’t yet known. And, it might not happen.
The final bids for the carmaker are due to Ford by Wednesday, and two of the bidders are Indian: Tata and Mahnindra & Mahindra, which is an Indian automaker larger than Tata. A third bidder is equity company One Equity.
Bids are expected to top 1.5 billion, the value earlier placed on the Jaguar and Land Rover asset sale by Merrill Lynch. It’s known that Tata has reserved 1.5 billion and it is believed that Mahnindra has that money, as well. What access to funds One Equity has in the current credit market is less clear.
The $1.5 billion figure represents a lower price than Ford initially had hoped to receive. The tightening credit market, however, has made a large scale-sale such as this more difficult, because it has squeezed out other bidders that might have expected to raise funds from the equity market.
Source: Economic Times