The Hindu Business Line : Ford shares slip after JLR deal with Tata

NEW YORK: Ford's decision to sell its iconic brands Jaguar and Land Rover to Indian conglomerate Tata has failed to enthuse the stocks of the US car maker, which slipped over two per cent on the New York Stock Exchange after the announcement.

After months of discussions, Tata Motors yesterday entered into a definitive agreement with Ford to acquire the two British luxury brands at an estimated $2.3 billion.

Following the announcement, shares of the American carmaker declined 2.17 per cent to end at $5.87 on the New York Stock Exchange. The scrip had opened positively at $6.09, up 1.5 per cent compared to Tuesday's closing price of $6.

However, during the day's trade, shares of the firm fell to an intra-day low of $5.83 dollars. Going by the closing price of $5.87, the company had a market capitalisation of $12.96 billion.

Further, the transaction is the culmination of Ford's decision last August to explore strategic options for the JLR business as the company increases focus on its Ford brand and 'One Ford' global transformation.

Commenting on the deal, Mr Alan Mulally, CEO and President, Ford Motor had said: "Jaguar and Land Rover are terrific brands... we are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship ."

"Now it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Co that delivers profitable growth for all," he added. - PTI

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