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Automotive News Europe is breathlessly reporting that Ford is to receive at least six bids for its Jaguar and Land Rover operations. AutoNews sources British press – Financial Times, Economic Times and the Daily Telegraph – in lining up the names of the bidders
The bidders include the usual suspects from the capital equity world including Cerberus Capital Management – the new owners of Chrysler Group and Tower Automotive in addition to Delphi and half of GMAC, Ripplewood Holdings and One Equity Partners.
Carmakers thought to be in the running include Hyundai Motors from Korea, Tata and Mahindra& Mahindra from India
Automotive News reports that “Ford said today that it has had contact with interested parties and is evaluating the level of interest, but declined to provide details on the potential bidders or give a timeline for any sale.”
Reports are that the sale price was expected to be on the order of $1.5 billion. Given the price Ford paid for Jaguar (about $2.5 billion i the late ’80s) and Land Rover, this seems to be petty cash. Land Rover is doing very well these days and a price as low as $1.5 billion has to be in recognition of a huge discount assigned to Jaguar. Recent speculation has been that the third brand in Ford’s Premier Automotive Group – Volvo – could bring $8-billion or more should it be sold.