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: AutoNews: 3 To Fight For Fords European Brands



megeebee
11-12-2007, 03:13 PM
Three to fight for Ford European brands



Automotive News | November 12, 2007 - 12:00 pm EST




LONDON (Reuters) - Automaker Ford Motor Co. has narrowed the auction of its Jaguar and Land Rover brands to three bids, two of them involving Indian companies, people familiar with the matter said earlier today.

Indian carmaker Tata Motors as well as rival Mahindra & Mahindra, which has teamed up with buyout firm Apollo, are both set to make third round offers for the British luxury brands.

One Equity Partners, a buyout firm funded by U.S. investment bank JP Morgan, is also on the list, the sources said.

Ford is struggling with declining sales and a falling U.S. market share and announced last week it was nearing a deal to shed Jaguar and Land Rover. At the time it posted a third quarter net loss of $380 billion, compared with losses of $5.2 billion a year earlier.

Ford has been exploring the sale of the brands since June as it continues a global strategic review which led in March to the sale of Aston Martin to a Kuwait-backed consortium in a 480 million pounds deal.

Mahindra & Mahindra, India’s top utility vehicle and tractor maker, initially pulled out of the process because it was only interested in one of brands, whereas Ford wants to sell them together.

The Indian company rejoined the auction after partnering with Apollo in a break-up bid that would give each one of the brands.

Indian companies are becoming increasingly aggressive acquirers outside their home market as they seek diversification and growth.

Tata Motors, India’s top vehicle maker, has a joint venture with Fiat to make premium cars for the Italian firm.

Ford invited six second-round offers earlier this month, people familiar with the matter said at the time. It has now evaluated them and selected the three parties it wants to fight for the businesses, the sources said.

One of the sources said the bidders are now expected to enter talks with trade unions and the UK government about conserving jobs amid speculation some of the bidders may try to move production outside the UK.

“We expect an agreement by early next year at the latest,” a spokesman for Ford said. Ford declined to comment further.

Buyout firms TPG, Terra Firma and Ripplewood were among suitors that were expected to make second-round offers but were not on the third-round shortlist.

Merrill Lynch analyst John Murphy at the time had valued the two brands at as much as $1.5 billion combined.

Source: http://www.autonews.com/apps/pbcs.dll/article?AID=/20071112/ANA02/71112007/1128&template=printart

megeebee
11-12-2007, 03:14 PM
"This is just a nasty rumor. Ford will never sell these brands. They've said so."

megeebee
11-12-2007, 03:18 PM
Merrill Lynch analyst John Murphy at the time had valued the two brands at as much as $1.5 billion combined.


Let's see, Ford spent something like 15 Billiion on the both of them over the years........ya, a Billion and half sounds about right.


This has to be the biggest loss for them since the Edsel. I'm sure the Ford balance sheet will be in much better shape after this, though. Buy shares now.

2b2
11-12-2007, 05:22 PM
considering:

"This is just a nasty rumor. Ford will never sell these brands. They've said so."

"How can you tell when a politician is lying..."
"How can you tell when a 'suit' is 'spinning'..."
"How can you tell when a forum-poster is full of..."
*ahem*

it'd sure be interesting if they sold all of LR
yet kept 1/2 of Jag...
... but then I'm a forum-poster :D

megeebee
11-13-2007, 01:56 AM
considering:


"How can you tell when a politician is lying..."


......he's talking.




"How can you tell when a forum-poster is full of..."
*ahem*

This is my standard response to all stories about the sale of Jaguar over the past year or so. It is a 3 sentence version of the usual response posted by Ford supporters who believed the company's denials, or assumed "no comment" meant "not for sale".


it'd sure be interesting if they sold all of LR
yet kept 1/2 of Jag...
... but then I'm a forum-poster :D

In the time it has taken me to post this, Ford has probably lost 2 million dollars on Jaguar. What would the point of retaining that situation be?

2b2
11-13-2007, 02:10 AM
Quote:
Originally Posted by 2b2
"How can you tell when a forum-poster is full of..."


This is my standard response to all stories about the sale of Jaguar over the past year or so. It is a 3 sentence version of the usual response posted by Ford supporters who believed the company's denials, or assumed "no comment" meant "not for sale".




I know :)&;)
my reply is just my (new) standard response to your standard response. re-;)

btw, I didn't mean to impune you with my forum-poster remark... ...just myself... ...and possibly forum-posters in general re-re-;)

jsaylor
11-13-2007, 04:23 PM
......he's talking.



This is my standard response to all stories about the sale of Jaguar over the past year or so. It is a 3 sentence version of the usual response posted by Ford supporters who believed the company's denials, or assumed "no comment" meant "not for sale".



In the time it has taken me to post this, Ford has probably lost 2 million dollars on Jaguar. What would the point of retaining that situation be?

I love Jag and LR but obviously the two brands are a tough fit for FoMoCo with the powers that be never having figured out exactly what they wanted to do with them (in fairness LR is less problematic than has been Jag) If Ford's suits couldn't find a way to get it right in over the course of so many years then it is truly time to let somebody else have a go at it. Particularly given Ford's current situation.

megeebee
11-14-2007, 04:51 PM
I know :)&;)




And I know, that you know.


Your turn!

2b2
11-15-2007, 12:41 AM
And I know, that you know.

Your turn!




oops
I deeply & sincerely apologize for the delay in responding but I was all caught up with the MKS
:blush:
sorry



AND I KNOW THAT YOU KNOW THAT I KNOW THAT...
I'm going back to the MKS now... ...g'nite