Tata seeking $3 billion loan for financing the Jaguar-Land Rover deal

New Delhi, 06 March 2008: Tata Motors Ltd. intends to take $3 1000000000 from figure banks to direction the acquire of Ford Motor Co.’s Jaguar and Land Rover luxury-car brands. The consort plans to improve the money from banks including Citigroup Inc. and JPMorgan Chase & Co.

A flourishing acquisition of the U.K-based automobile brands module modify Tata Group’s foreign accomplish after the acquire of Corus Group Plc for $13 1000000000 terminal year, the large ever by an Amerindic company.

Industry experts reckon that it would be a Brobdingnagian care for Tata Motors to swallow. Tata won’t be healthy to intend outsourcing from Bharat and is implausible to be healthy to inform Jaguar or Land Rover to the Amerindic mart at small in the incoming digit to threesome years. In addition, grant liabilities from the acquisition could also be huge.

According to whatever covert sources, Tata Motors is also conversation to Bank of Tokyo, Mitsubishi UFJ Ltd., BNP Paribas SA, Calyon, ING Groep NV, Mizuho Financial Group Inc., Standard Chartered Plc and State Bank of Bharat Ltd. to hold the loan.

About $2.5 1000000000 module money the outlay of the acquisition and the rest module be utilised for employed capital.

Earlier on Tuesday, Tata Motors undraped the $2500 automobile - Nano - at the 78th Genf Motor Show. Two versions of the world’s cheapest automobile was undraped along with threesome another vehicles, the newborn procreation Indica, the newborn Safari DICOR 2.2 VTT and the Xenon.

“Nano is not presently designed to be launched in aggregation and we are earnest most making a effort to the business on a orbicular basis”, Mr.Ratan Tata told reporters on the occassion.

“1998, when we displayed the Indica at Geneva, scarred our entry into traveller cars. The terminal decennium has been a punctuation of momentous utilization in Tata Motors’ capabilities. The pass of the Nano signifies this in-house progression”, he added.

Tata Motors is also considering the existence of orbicular licensing of the creation of Nano.

Tags: bank of tokyo, bank of tokyo mitsubishi, bank of tokyo mitsubishi ufj, bnp paribas, citigroup inc, corus group, corus group plc, financial group inc, ford motor co, geneva motor show, ing groep nv, jpmorgan chase, mizuho financial group, other vehicles, ratan tata, state bank of india, tata group, tata motors ltd, tokyo mitsubishi ufj, undisclosed sources

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