Tata mulls Jaguar, Land Rover buy

Tata Motors, whose parent company the Tata Group is one of India's largest and most respected business conglomerates, has appointed advisors to evaluate a bid and also signed a confidentiality agreement with Ford for access to the financials of the luxury brands, the Economic Times said on Wednesday, citing sources close to the development

A Tata Motors spokesperson said the company does not comment on speculation on mergers and acquisitions.

Mahindra & Mahindra (M&M), one of India's leading manufacturer of general-purpose utility vehicles and light commercial vehicles, and some other private equity players might also be interested in these brands, the report stated.

Industry analysts feel that Mahnidra & Mahindra might not be very keen, as Jaguar and Land Rover might not fit into the firm's overall plan. M&M officials have refused to comment on whether the firm is interested in bidding.

According to the Daily Telegraph, analysts have suggested that Jaguar and Land Rover sale may fetch at least $1.5 billion (735 million) for Ford.

Ford has reportedly asked Goldman Sachs, Morgan Stanley and HSBC to advise on the sale.

Private equity firms Apollo Management, Cerberus Capital Management, Blackstone Group and Alchemy Partners have also reportedly shown interest in the Jaguar-Land Rover deal.

FORD'S LUXURY BRAND EXIT

In recent years, Ford, which depends much more on sales of light truck models, such as SUVs, pickups and minivans than on more fuel-efficient cars, has been battered by high gasoline prices, rising pension and retiree health costs in the United States. Meanwhile, Japanese auto making rival Toyota has surpassed Ford in U.S. sales, winning over consumers with what many view as more reliable, fuel-efficient models.