The Hindu : Business : Tata seeks $3 b loan for Jaguar deal, says report

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Friday, Mar 07, 2008
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Tata seeks $3 b loan for Jaguar deal, says report

LONDON: Tata Group firm Tata Motors, which is in advanced discussions with U.S. car maker Ford to buy its luxury brands Jaguar and Land Rover, is seeking loans of about $3 billion to fund the proposed deal, media report here said.

Quoting people familiar with the matter, the Financial Times said that Tata Motors is seeking loans of about $3 billion to fund its planned purchase of Jaguar and Land Rover marques as the firm moves closer to sealing the takeover.

“India’s second-largest car maker has assigned Citigroup and JPMorgan, its financial advisers on the acquisition, to arrange the financing with a range of other international and domestic banks taking part in the talks,” the newspaper said in a report published on its online edition.

According to the report, the loan that is expected to be mostly short-term bridge financing, is bigger than anticipated purchase price of the deal, estimated at about $2 billion.

Banks show interest

Alongside Citigroup and JPMorgan, other banks interested in shouldering part of the loan include Standard Chartered, State Bank of India, Bank of Tokyo and Mitsubishi UFJ, Mizuho Financial Group and Calyon, it said.

The paper reported that Tata’s efforts to begin raising financing for the deal comes amid expectations that the transaction will be closed in coming weeks once negotiators work through agreements covering engine supply, intellectual property and Jaguar and Land Rover’s pension funds. — PTI

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