Cerberus Talked to Ford about Jaguar and Land Rover
By Brendan Moore
The Wall Street Journal is reporting today that Cerberus has had recent talks with Ford about a possible acquisition of Jaguar and Land Rover. Those talks were inconclusive and are over, the report states. Neither Ford not Cerberus issued any comment on the report.
It is expected that Ford is bundling Jaguar with Land Rover to any potential buyers as an enticement since Jaguar is not an overly attractive acquisition by itself. Cerberus, the recent acquirer of Chrysler, would have had a lot of brands and a lot of platforms to work with if it were to own Chrysler, Jaguar and Land Rover. It is possible that that they have chosen to stick to the Herculean task at hand; that is, Chrysler’s turnaround.
Ford is expected to gain around $1.5 billion USD in a sale of Jaguar and Land Rover, regardless of whomever buys both brands, which isn’t a lot considering what they’re selling, but Ford needs all the cash it can get as it tries to get their business back on solid ground. In a related matter, there has been no news about the potential sale of Volvo since the recent denials by BMW that it was interested in purchasing Volvo and Ford’s terse statement subsequently that Volvo was not for sale. Still, it is believed that Ford is also open to offers for Volvo, but is not actively shopping Volvo like Jaguar and Land Rover.
Unidentified sources at Ford were quoted as saying that the sale of Jaguar and Land Rover would probably take at least a month and probably is months away, according to the article in the Wall Street Journal.
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