Ford to be back-seat driver even after sale?

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Ford to be back-seat driver even after sale?

The Jaguar and Land Rover deal could take another two months to be finalised. Ford, the world's third-largest automaker, may even retain a minority stake in the companies, reports CNBC-TV18.

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Excerpts from India Business Hour on CNBC-TV18 Watch the full show » ALSO READ See latest News about Mah and Mah See previous management interviews See what other Experts & Brokerages are saying about Mah and Mah Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Tata Motors |

The Jaguar and Land Rover deal could take another two months to be finalised. Ford , the world's third-largest automaker, may even retain a minority stake in the companies, reports CNBC-TV18. 

Prospective bidders for Ford's Jaguar and Land Rover brands have reportedly begun due diligence, but the sale may finally go through only in the next two months. Ford has, so far, publicly said it is pleased with the expression of interest it has received and is evaluating the offers in depth.

Also, it has been learnt that Ford may even retain a minority shareholding in the business. This is what Ford did when it sold Aston Martin in March this year. Ford continues to hold 15% in the company.

Alan Mulally , CEO at Ford has gone on record to say, "We are open to different options, including retaining a minority stake in both operations. We would rather sell the two brands jointly as they were so highly integrated."

However, Ford's production links with Land Rover and Jaguar are far more interwoven. Analysts say Ford may have to retain a significant stake to get a good price. Union leaders have urged the Government to block any sale to a private equity bidder, fearful that such a move could lead to widespread job losses.

Ford had received preliminary bids from some private-equity firms including TPG, Cerberus Capital Management, Ripplewood Holdings and One Equity Partners apart from two Indian auto manufacturers - M&M and Tata Motors .