NEW DELHI(AP) _ The chairman of India's Tata Group has confirmed
his company's interest in acquiring the Jaguar and Land Rover units
of Ford Motor Co.
``We certainly have an interest in that,'' Chairman Ratan Tata
told the CNN-IBN television channel in an interview, excerpts of
which were telecast Friday.
The company had previously refused comment on the speculation in
the Indian media about a possible Tata bid for the Ford assets.
Tata said the interest in Jaguar and Land Rover is driven by a
desire to expand Tata Motors' global reach and reduce its dependance
on the Indian market, that currently accounts for more than 90 per
cent of its sales.
``It is to give ourselves scale, to give ourselves global
reach,'' Tata said, but declined to comment further.
The Tata Group, with interests ranging from automobiles to steel
and software, is the most aggressive among Indian companies seeking
overseas acquisitions to gain global visibility after thriving for
decades in a protected home market.
Earlier this year, Tata Steel won a US$12 billion bid to acquire
Britain-based Corus Steel, an acquisition that would make the Indian
company the world's fifth-largest steel maker.
Through acquisitions, Indian companies hope to penetrate new
markets, acquire technologies and gain access to raw materials
needed for industrialization back home.
Cash-strapped Ford, which lost US$12.7 billion loss in 2006, has
been looking to sell its Jaguar and Land Rover units. The company
has taken opening bids and Ford President and CEO Alan Mulally said
in late July that the probability of selling the brands is greater
than 50 per cent.
In its bid for Jaguar and Land Rover, Tata would be pitted
against two former Ford executives who have reportedly tied up
private equity firms to make separate bids for the same assets.
Sir Nick Scheele, who served as Ford's president between 2001 and
2005, has reportedly joined New York-based Ripplewood Holdings LLC
to bid for the luxury brands.
The other bid has reportedly come from Jacques Nasser, who was
Ford's chief executive from 1999 to 2001 and has tied up with One
Equity Partners LLC that private equity investments for JPMorgan
Chase & Co.