Could Land Rover and Jaguar be headed to Russia?
CNN Money is reporting that Group GAZ is showing some interest in purchasing the firms from Ford. Ford has said that it will entertain offers for the two British marques and although several names have been mentioned, this was the first we heard of GAZ being involved. GAZ has already
denied the rumor, although it was pointed out that the company has expressed an interest in expansion. This comes almost exactly a year after
GAZ first denied interest in Jaguar in a separate sale rumor.
If it is interested, GAZ would be on a list of potential suitors that includes private equity firms Cerberus and One Equity Partners, plus new entrants Tata Motors and Mahindra, as well as newcomers American equity firms TPG and Ripplewood Holdings. Of course, all of this is still contingent on Ford really committing to the idea of a sale at all. Concerns about what a sale of these prestige brands could do to Ford's worldwide reputation are still keeping the company from serious work on a sale.
As we reported
last week, Ford hasn't given any of the bidders a complete financial picture of Jaguar and Land Rover, nor have any of the bidders even been allowed to visit the factories or speak to senior management. Potential buyers have only been told not to bid if they plan on closing factories or moving production out of Britain. We'll keep you posted.
[Source: CNN Money]
