ID :
40099
Mon, 01/12/2009 - 09:30
Auther :
Shortlink :
http://m.oananews.org//node/40099
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Tata recruits Citigroup as adviser for JLR assistance: report
London/New Delhi, Jan 11 (PTI) Seeking about one billion pound help from the British government to overcome financial crunch facing the prized acquisitions Jaguar and Land Rover, Tatas have roped in Citigroup for assistance.
Asked if it had mandated Citigroup to advise in talks with
the British government, a Tata Motors spokesperson evaded a
direct reply saying he would not comment on it.
He, however, told PTI: "It is a well known fact that the
UK society of motor manufacturers and traders along with JLR
are in talks with the the government in the light of health of
the auto industry and liquidity crisis."
Meanwhile British publication Sunday Times reported Sunday
that "India's Tata has recruited the American bank Citigroup
to advise it in its talks with the government over state
assistance for Jaguar Land Rover, the carmaker."
The report said, "discussions between officials and
advisers on both sides are expected to resume this week, as
Tata seeks a short-term bridging loan to help it with
cash-flow problems".
The American Bank Citigroup was the adviser for the Tata
- Jaguar Land Rover deal. Last year Tata bought Jaguar Land
Rover from Ford for USD 2.3 billion. Sales of Land Rovers in
particular have been hard hit by the credit crunch.
The report of Tata roping in Citibank as adviser comes in
the wake of the UK Business Secretary Lord Mandelson's
comments last month stating that the government didn't have an
"open cheque book" for ailing private companies and the Indian
conglomerate has the first responsibility to ensure the
survival of luxury carmaker JLR.
"People familiar with the negotiations has said yesterday
that they did not foresee a speedy resolution, despite Tata
having raised the matter with government in November," the
Sunday Times said.
The newspaper added "there is also disagreement over the
nature of the talks, with sources close to the government
saying Jaguar Land Rover does not appear to be in urgent need
of a cash injection."
The Sunday Times further said, "sources close to Tata,
however, believe the government is close to approving a 500
million bridging loan."
Jaguar Land Rover has urged the government to provide
financial support similar to that given by other European
governments, highlighting Jaguar Land Rover's extensive
investment in research and development in Britain.
The paper said Lord Mandelson is under renewed pressure
to provide a loan scheme to support the wider British car
industry. Nissan, which operates the largest car plant in
Britain, last week said it would lay off 1,200 staff, a
quarter of its workforce.
The Society of Motor Manufacturers and Traders has urged
Mandelson to provide guarantee to car-finance groups in a bid
to stimulate demand, the report said.
On Wednesday, Mandelson will give evidence to the Commons
business committee on the state of the car industry, the
report added. PTI DRR
Asked if it had mandated Citigroup to advise in talks with
the British government, a Tata Motors spokesperson evaded a
direct reply saying he would not comment on it.
He, however, told PTI: "It is a well known fact that the
UK society of motor manufacturers and traders along with JLR
are in talks with the the government in the light of health of
the auto industry and liquidity crisis."
Meanwhile British publication Sunday Times reported Sunday
that "India's Tata has recruited the American bank Citigroup
to advise it in its talks with the government over state
assistance for Jaguar Land Rover, the carmaker."
The report said, "discussions between officials and
advisers on both sides are expected to resume this week, as
Tata seeks a short-term bridging loan to help it with
cash-flow problems".
The American Bank Citigroup was the adviser for the Tata
- Jaguar Land Rover deal. Last year Tata bought Jaguar Land
Rover from Ford for USD 2.3 billion. Sales of Land Rovers in
particular have been hard hit by the credit crunch.
The report of Tata roping in Citibank as adviser comes in
the wake of the UK Business Secretary Lord Mandelson's
comments last month stating that the government didn't have an
"open cheque book" for ailing private companies and the Indian
conglomerate has the first responsibility to ensure the
survival of luxury carmaker JLR.
"People familiar with the negotiations has said yesterday
that they did not foresee a speedy resolution, despite Tata
having raised the matter with government in November," the
Sunday Times said.
The newspaper added "there is also disagreement over the
nature of the talks, with sources close to the government
saying Jaguar Land Rover does not appear to be in urgent need
of a cash injection."
The Sunday Times further said, "sources close to Tata,
however, believe the government is close to approving a 500
million bridging loan."
Jaguar Land Rover has urged the government to provide
financial support similar to that given by other European
governments, highlighting Jaguar Land Rover's extensive
investment in research and development in Britain.
The paper said Lord Mandelson is under renewed pressure
to provide a loan scheme to support the wider British car
industry. Nissan, which operates the largest car plant in
Britain, last week said it would lay off 1,200 staff, a
quarter of its workforce.
The Society of Motor Manufacturers and Traders has urged
Mandelson to provide guarantee to car-finance groups in a bid
to stimulate demand, the report said.
On Wednesday, Mandelson will give evidence to the Commons
business committee on the state of the car industry, the
report added. PTI DRR
