Ford could name Indian carmaker Tata Motors a "preferred bidder" for its Jaguar and Land Rover units today, two people briefed on the negotiations said yesterday.
Talks having been going on with three potential suitors, and a final deal is not expected to be announced until early next
year, one of the people said.
Tata is vying with another Indian carmaker, Mahindra & Mahindra, as well as US private equity firm One Equity Partners, for the units.
This month the three companies had submitted bids that ranged from US$1.5 billion ($2 billion) to US$2 billion, said one of the people.
Both sources requested anonymity because the talks are confidential.
"They have been negotiating with all three parties," one of them said of Ford. "Clearly it isn't a signed, sealed and delivered thing yet to Tata Motors."
Ford executives continually have said they do not expect a sale to be announced until early next year, but a preferred bidder would mean the company is focusing on one suitor.
Tom Hoyt, a spokesman for Dearborn-based Ford, would not comment on any potential announcement.
Jaguar's main union, Unite, also said it expected the preferred bidder announcement soon, said spokesman Eddie Barrett. Unite has said it would prefer Tata if the company is sold.
British unions are seeking assurances that the sale would not affect job levels. Combined, Jaguar and Land Rover employ about 15,300 in the UK.
Ford is interested in maintaining its parts supply relationship with the new owners of Jaguar and Land Rover. The company builds engines for Jaguar in Europe.
All three bidders met last month with the British Government, unions and Ford about the sale.
Cash-hungry Ford lost US$12.6 billion last year but earned US$88 million in the first nine months of this year.
- AP
