MG-Rover.org Forums banner

Jag Land Rover profits/ Ford losses

3K views 13 replies 9 participants last post by  xerif 
#1 ·
#5 ·
How do you know they have agreed a price? What is it?

I would suggest that creaitive accounting is being used to make JLR that bit more valueable. Standard practice when selling a company.

No one outside of the acquisition team will have any details on the price of the actual deal.

TATA are the preferred buyer, they may not eventulally be the purchaser. Due dilligence can throw up all sorts of surprises.
 
#7 ·
The rumours in the industry today has been that Tata have walked away. Whether that is confirmed during or after the weekend, we'll have to see.

I've heard heard that from two sources today. As to whether they are reliable, the jury is still out!
 
#8 ·
It is pretty easy to make a car company look good for one year - you just shift a load of capital costs into the previous or next year or stop spending on development.

That is exactly what BAe did with Rover Group.

As others have pointed out - Tata have not done the deal until they sign on the bottom line. Due Dilligence is when the real arguing starts and can throw all sorts of things up as it did with Alchemy/BMW over Rover in 2000.
 
#13 ·
If there is a problem, it must be down to the pension fund deficit or the licensing terms Ford are insisting on. All sides seemed to be happy about the deal otherwise, and don't forget Tata was prepared to pay a little over the odds for Corus, because they felt the company they were buying was sound.

I also doubt that Ford is backing out of selling due to JLR's improved profitability since the purpose of selling now is to reduce Ford's debt. If Ford don't sell to Tata, then they will get a lot less from the other bidders who are equity fund companies or Mahindra who are 50% funded by an equity fund company on whom they plan to dump Jaguar as soon as the sale is completed.
 
#14 ·
Maybe its the usual cut and thrust of negotiation.

Liverpool Echo reports that there is a delay in the likely date of completion, Ford don't want a share and elsewhere there are at least 20 other deals with Ford in the mix! So don't read anything into any dealay until it's official. Anyone involved in these sort of of deals knows that things can often go through wobbles, tantrums and walkouts before the signatures.

http://www.liverpoolecho.co.uk/live...ion-concern-at-ford-sell-off-100252-20397502/
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top