Business Daily from THE HINDU group of publications
Monday, Jan 12, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Monday, Jan 12, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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Mergers & Acquisitions
Our Bureau Chennai, Jan. 11 The American bank Citigroup will assist Tata Motors in its discussions with the UK Government to bail out Jaguar Land Rover (JLR). According to a report in the UK’s Sunday Times, the Tata group has recruited Citigroup as advisors in the negotiations for State assistance. Citi advised the Tatas when they acquired JLR from Ford for $2.3 billion last year. Government officials and advisers to both the parties are to start negotiations this week. The company, which raised the issue of UK Government assistance last November, is hoping to get a short-term bridging loan to deal with the liquidity crunch. The report, quoting those in the know about the negotiations, says the discussions could take time. Tata Motors has said JLR has invested extensively in R&D in Britain and the Tatas hope to get financial assistance from the UK Government on the lines of the support that other car manufacturers have got from European Governments. But the nature of the talks are not clear, says the report. Sources close to the Government say JLR does not seem to be in need of urgent financial support. But others close to Tatas believe the Government is set to approve a £1.5 billion bridge loan, it says. Jobs under threatAt stake, as the wait for a bail out package continues, are over two lakh jobs linked to JLR’s entire supply chain. Over 15,000 employees at JLR and ten times that number associated with the technology centre, component makers, logistics providers and dealers could lose their jobs. It is threat of job losses that is driving the US and European countries to support the car makers. JLR supply chain will collapse without bailout Government support required, says JLR Tata Motors completes Jaguar and Rover buy ‘Jaguar-Land Rover buy is a long-term strategic decision’ More Stories on : Mergers & Acquisitions | Cars | Overseas Investments | Tata Motors Ltd
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