Tata Motors may be named preferred bidder for JLR

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Tata Motors may be named preferred bidder for JLR

CNBC-TV18 reports that the race to acquire Ford's JLR brands is headed for a close finish. Tata Motors is slowly emerging as the favourite. Even as the Ford management continues to finalise on the new owner for its iconic brands, sources said that Tata Motors is emerging as a preferred bidder, in terms of bid price and unions support.

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CNBC-TV18's Swati Khandelwal reports that the race to acquire Ford 's Jaguar and Land Rover brands is headed for a close finish. But Tata Motors is slowly emerging as the favourite. Even as the Ford management continues to finalise on the new owner for its iconic brands - Land Rover and Jaguar, sources tell CNBC-TV18 that Tata Motors is emerging as a preferred bidder, both in terms of the bid price and unions support.

CNBC-TV18 learns that Tata Motors has emerged as the highest bidder and bid at more than USD 2 billion, while M&M's bid has not touched the USD 2 billion mark.

Another strong support that Tata has is from Unite, unions working for JLR, who have said in the past that out of the three shortlisted bidders, they feel Tatas fit the best criteria.

"Though we do not want to support any of the bids, we do not want any of the two companies (JLR) to leave Ford. With reluctance, our members feel that if they have to choose between the three bidders, seeing the size and experience of Tata Motors, they feel Tatas are the best option," said Tony Woodley , General Secretary, Unite.

The Union also says that they expect an announcement this week and negotiations will follow.

The Ford management has said that, "No decisions have been made at this time. These are complex commercial discussions and it is in the interests of all parties concerned, if the process is conducted in a confidential manner. We anticipate an agreement early next year at the latest."

International media reports suggest that Tata Motors is set to bag JLR and an announcement is expected in the next 15 days. Tata Motors refused to comment on the matter.

Unions support and highest bid are the two crucial criteria for selecting the owner of JLR. The Tatas appear to be leading in both and the Ford management will make an official announcement soon.

CNBC-TV18 Disclaimer

This information is source-based and has not been provided to the stock-exchanges.