[scorp 1]

Ford has accepted Tata's bid of £2 billion for Jaguar and Land Rover !

Union backing strengthens Tata's Jaguar, Land Rover bid - AOL News

[madan80]

and the same news on CNNIBN
Tata to acquire Jaguar, Land Rover for $2 bn

with sources declaring Tata Motors as the frontrunner. Ford has held talks with Tata, Mahindra and Mahindra and US private equity firm, One Equity Partners.
UK media reports say Ford has accepted Tata's bid of $2 billion for Jaguar and Land Rover.

i feel quite proud!

[2theMax]

guys this is a killer haul !

I have crossed the castle bromwich jaguar assembly plant and the land rover works many times in birmingham , and these are HUGE ..bigger than most of us could imagine ..waiting for the day i could see the TATA logo on one of those buildings ..

[Tstag]

According to various reports TATA execs are flying into the UK tonight to buy it off Ford on Friday.

[narayan]

What a symbolic deal !! let the age of BRITISH COLONISATION begin ....

200 years from the time they set foot here, we are at their front yards and throwing money at them....poetic justice..

[scooby05]

Originally Posted by Tstag

According to various reports TATA execs are flying into the UK tonight to buy it off Ford on Friday.

You are Very close to the Jag mother plant. Keep us posted on the developments please.

[himanshugoswami]

I for one am very very proud of Tata for this and if the acquisition comes thru, my chest will swell up with pride.

if for nothing else but for the fact that here is one company that is putting Indian ownership on things quintissentially British- Tetley tea, Corus steel and now jag and LR. am Sure if Aston was up for sale, TM would have made a bid for that too.

and, contrary to what most people have been discussing here, the acquisition will do TM a lot of good in terms of accelerated product development and excellent powertrains, not to mention the prestige factor. this is the view of people inside TM product development and they are really excited about this acquisition.

[Steeroid]

I was speaking this morning to someone whose knowledge on automotive issues is at another level and what he had to say made me swallow my viewpoint on the deal.

According to him, there is very limited scope for organic growth given Tata's global ambitions and the only way to accelerate growth and stature is thru high-profile acquisitions. These acquisitions need not necessarily carry technological benefits - what is important is visibility.

Given that scenario it makes a lot more sense to buy something that is up for sale than to bid and fight for an unwilling acquisition - it will also cost a whole lot more in time effort and money. Therefore buying these brands from someone who wants to get rid of them makes economic sense. The stature of the brands, regardless of their situation today, also plays a vital role. This is why they didn't bid for Daewoo's passenger car business - Indian ownership + Korean brand would be difficult to sell - if not elsewhere, definitely in Euro-worshipping India. A failing Euro brand caries more weight in our colonial minds than a successful Korean one.

All things considered, this move is crucial to Tata moving up the automotive ladder. 2 Billion Euros spent on internal product development would take longer and won't have the same effect that these brands carry.

Money well spent, then!

[Mayavi]

Originally Posted by Steeroid

According to him, there is very limited scope for organic growth given Tata's global ambitions and the only way to accelerate growth and stature is thru high-profile acquisitions.

This applies to the whole of India Inc and not just TATA. Many Indian companies flush with cash from domestic market and investor confidence are acquiring foreign companies and growing quickly. This has been mentioned in press every time there is a acquisition.

[bigman]

Originally Posted by narayan

What a symbolic deal !! let the age of BRITISH COLONISATION begin ....

200 years from the time they set foot here, we are at their front yards and throwing money at them....poetic justice..

Buying white elephants. If they were buying up pucca blue chip companies it would be a proud moment but third rate companies with lots of inherent problems are nothing I would be shouting from the roof tops about.

[Thad E Ginathom]

I don't see the news that the bid has been accepted: maybe we're jumping the gun here as yet.

[khanak]

Originally Posted by Steeroid

Money well spent, then!

Excellent explanation Steeroid.

[Car-Agey]

Originally Posted by bigman

Buying white elephants. If they were buying up pucca blue chip companies it would be a proud moment but third rate companies with lots of inherent problems are nothing I would be shouting from the roof tops about.

Dont forget L N Mittal bought ailing steep companies, turned them around and became No 1.

Corus was in trouble, by buying it TATAs arrived at the world scene. This will indeed be a big step for TATA Motors.

[Thad E Ginathom]

We are jumping the gun. No offer has been accepted yet.

Set to become preferred bidder is what today's New Indian Express says, with mention of no announcement until the new year.

Hold the celebrations: with this kind of stuff, nothing is in the bag until it is, errr.... in the bag.

[Mayavi]

Per some reports, its a done deal but just not being announced yet. Ford is set to announce it to its workers before official announcement.