Analysts said that they were expecting to hear something like this for sometime, as Tata Motors and Fiat looked at working together in certain Latin American markets and elsewhere.
The Italian daily also mentions that Fiat may step in later in the whole process and pick up minority stake, if the deal goes through.
There would be two reasons for Fiat to do this. One is that technically, if one looks at Fiat brands, like Lancia or Maserrati, they may have something in common with brands like Jaguar. They are not similar in terms of characters as these are two different cars. A prospective customer for Jaguar is very unlikely to go and buy a Lancia or Maserrati.
Technically, there may be some synergies and also on a personal level, the CEO of Fiat is a good friend of Mr. Ratan Tata. So, analysts said that from that angle also, he may want to step in and help Tata in building its muscle and becoming a more formidable player in this whole bidding process.
The deal could be around USD 1.5 billion. Tata Motors could have another partner, in terms of surplus capital, who will get the money and mitigate the risk that is involved with a brand like Jaguar.
It is possible that Fiat could also be a partner. But there has been no official response yet. Though CNBC-TV18 has written to Fiat and tried to get in touch with the spokesperson, they have not been able to get official comment from them yet.
Fiat
