Thread: Update on LR Jag sale Part 1

From the Birmingham Post

Deadline passes for Jag and Land RoverJul 20 2007

The deadline for offers for Jaguar and Land Rover passed at midnight last night with five main players thought still to be in the running in the $1.5 billion sale.
Three American funds - One Equity Partners, Cerberus and Ripplewood Holdings are among the private equity groups thoughto be planning bids.

Of the trade buyers, only India's Tata and the Mahindra group remain of the trade buyers after Hyundai and Renault Nissan backed out. But One Equity Partners - which includes former Ford chief executive Jac Nasser as a senior partner - is thought to be in pole position.

One industry source said: "Jac Nasser has been sniffing around for ages, and he is desperate to get back into the automotive industry again.
"It was Nasser who brought Land Rover into Ford, and he is the man who put it together with Jaguar and Volvo to create the Premier Automotive Group (PAG).
"PAG was his baby."
The source added: "Whoever buys them is going to have to look at the engines at Land Rover.They are going to struggle in the next few years with the requirments to reduce emissions. Jaguar wants to go more upmarket and niche."

Another source, who asked not to be named, said: "Jaguar and Land Rover need a visionary, and Jac Nasser is certainly that. He is a magnetic personality and absolutely focused."
David Thursfield, who left Cerberus recently, could team up with Jac Nasser again, it has been claimed.
The two worked together at Ford, where Mr Thursfield was chairman of Ford of Europe -which oversees PAG.
One Equity and Cerberus declined to comment on speculation last night, as did Tata, although Hyundai - which had been linked to the sale in some quarters - ruled itself out.
Ford last night refused to comment on the sale, which could fetch anywhere between $1 billion to $1.5 billion for the two companies which employ 15,000 people in the West Midlands.
But it is thought last night's deadline is not definite, with bidders entering the process afterwards still being considered.
It is thought that Ford is seeking expressions of interest by last night in order to clarify its position so it can update shareholders when it reports its second quarter figures on July 26.
The figures will not show how each brand within PAG has performed, but it is believed Land Rover remains profitable and that Jaguar is narrowing its losses.
Another source confirmed that interest had been poor in the run up to the deadline.
However typically in such situations bids are often lodged at the last minute.
He said the two main private equity groups linked to a deal, Cerberus Capital Management and One Equity Partners, were "really only interested in Land Rover".
And he suggested: "Only one or two of the parties are in for Jaguar and Land Rover."
Ford, he said, remained keen to sell the two companies as a package.
Despite the levels of integration on things like components, it would be technically possible to split the two. However Ford did not want all the aggravation that would entail.
"They don't want to risk anything that could create havoc," said the source. A spokesman for Ford said: "Everything is still on the table, nothing is being ruled in or out.
"We have had contact from parties interested in Jaguar and Land Rover and we are evaluating their interest.
"But this is a very preliminary stage and no decisions have been made."
Ford, which lost $12.7 billion (£6.4 billion) last year and $282 million (£142 million) in the first quarter, has cut thousands of jobs and closed factories in an effort to shrink itself to match lower demand for its products. The company last year mortgaged its factories to get a £11.4 billion financing package to fuel its restructuring and cover expected losses in its automotive operations.
It expects to burn up £8.5 billion in cash before returning to profitability sometime in 2009.
Analysts have said the company may be burning cash at a higher rate than expected and may need to sell the British brands to raise money.
In March, the company sold its Aston Martin luxury sports car unit for £479 million, and it has said that all options are open, including a potential sale of Volvo.

Originally Posted by LRHybrid100

I just hope the Indians dont get it - you seen how ugly the Tata is?

Bugger that... Did you see what they did after they purchased Corus (Ex British Steel)??

The only bit of the business they left over here was the production, everything else was closed down & taken over to India.

M