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Speculation is rife that Tata Motors is close to bagging Ford Motor Company’s Jaguar and Land Rover though The Economic Times reports the deal is far from being clinched. Ford officials have denied reports that Tata Motors has already bagged the deal stating that the company is examining the sale of Jaguar and Land Rover “in greater detail” after receiving preliminary bids last week. The report says the shortlisted bidders are appointing advisors for the deal ahead of their next week’s meeting with Ford officials and management of Jaguar and Land Rover. These meetings will be followed by plant visits and detailed due diligence.

Financial Times reports that Ford is expected to let prospective bidders begin due diligence on its Jaguar and Land Rover brands next month. Alan Mulally, Chief Executive, Ford, said the company was “open to different options,” including retaining a minority stake in both operations. He said he would rather sell the two brands jointly as they were so highly integrated. Ford said a sale would seek to ensure that “Jaguar/Land Rover has the ownership and technology and investment structure it needs to allow it to reach its full potential”. Meanwhile, consultants have placed the deal at $2-3 billion. Merrill Lynch analysts had earlier evaluated Jaguar and Land Rover at around $1.5 billion.

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