CNBC-TV18 has learnt that Ford favours Tatas in the Jaguar deal, but the Labour Union holds the key.

Sources said that the Tata bid is likely to be in the USD 2-2.5 billion range. Union consensus is needed to seal the Jaguar, Land Rover deal.

According to sources, the agreement has a five-year no-retrenchment and no closure clause.

Union officials will meet Ford management next week, commented sources. The official announcement on the sale may still take a few weeks.

"The objective of any sale would be to enable Ford to concentrate on its core business strategy, while ensuring Jaguar-Land Rover has the ownership, technology and investment structure it needs to allow it to reach its full potential. Jaguar and Land Rover are great brands and we have invested in these brands. They are making good products and there are even more good products to come on line. I see a very bright and very exciting future for Jaguar and Land Rover," said Alan Mulally, President and Chief Executive, Ford.

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