Ford Shortens Bidder List for Jaguar, Land Rover
November 08, 2007

Ford has shortened its list of bidders for its Jaguar and Land Rover units.

Ford CEO Alan Mulally said in a Thursday morning conference call on third-quarter earnings that the planned sale of Jaguar and Land Rover is  "progressing" with "selective parties." The sale is expected to be completed "no later than early next year," he said.

A source told Dow Jones Newswires Thursday that Indian automakers Tata Motors Ltd. and Mahindra & Mahindra Ltd. along with One Equity Partners, a unit of J.P. Morgan Chase & Co. that involves former Ford CEO Jacques Nasser, have been selected to have more detailed discussions with Ford.

However, Dow Jones reports, other bidders haven't withdrawn, and Ford remains open to further talks with other bidders. Among them are U.S. private equity firms TPG, Ripplewood Holdings LLC and Cerberus Capital Management, which owns 80 percent of Chrysler.

The newswire reports potential buyers have to reach agreement with labor unions, and the preferred bidders are slated to meet with union leaders November 20.

Jaguar and Land Rover combined employ 16,000 workers, represented but Britain’s largest and powerful trade union, Unite. The union is demanding guaranteed 10-year service contracts with suppliers, a sizable financial stake retained by Ford and its full involvement in decision-making.

Ford has said it wants to complete the sale by early next year.

Posted by Michelle Krebs at 5:06 AM under Ford , Rumors | Comments (2) | digg this | Seed Newsvine