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Market turmoil hits Jaguar sale Market turmoil hits Jaguar sale
(about 1 hour later)
Ford's efforts to sell its Jaguar and Land Rover divisions appear to have been delayed by the ongoing turmoil in the global financial markets. Ford has admitted its sale of Jaguar and Land Rover is being affected by the global markets turmoil, but insisted the process was not being slowed down.
Speaking to reporters, Ford's chief executive Alan Mulally admitted that the stock market turbulence "absolutely is an issue" regarding the sales. Speaking to reporters, Ford's chief executive Alan Mulally said the stock market turbulence "absolutely is an issue" regarding the disposals.
As a result, Ford said no announcement would now be made over the marquees until late this year or early 2008. Ford said no announcement would be made over the sale of the marques until late this year or early 2008.
The market turmoil has caused a sharp slowdown in general takeover activity.The market turmoil has caused a sharp slowdown in general takeover activity.
Private equity slowdownPrivate equity slowdown
With banks now less willing to lend money, potential buyers of Jaguar and Land Rover appear to be suddenly less able to borrow the funds they need.With banks now less willing to lend money, potential buyers of Jaguar and Land Rover appear to be suddenly less able to borrow the funds they need.
Without naming names, Ford said last month, before the market turmoil started, that it had received a number of informal offers.Without naming names, Ford said last month, before the market turmoil started, that it had received a number of informal offers.
Two companies heavily linked with bids for Jaguar and Land Rover are private equity groups Ripplewood and Cerberus Capital, who recently purchased Chrysler from Germany's DaimlerChrysler Two companies heavily linked with bids for Jaguar and Land Rover are private equity groups Ripplewood and Cerberus Capital, the latter of which recently purchased Chrysler from Germany's DaimlerChrysler
Analysts say the private equity sector has been particularly affected by the reduced availability of cheap loans, as the industry has used large amounts of debt to fuel a global takeover spree over the past year.Analysts say the private equity sector has been particularly affected by the reduced availability of cheap loans, as the industry has used large amounts of debt to fuel a global takeover spree over the past year.
Ford is selling UK-based Jaguar and Land Rover as it continues efforts to streamline its operations and return to long term profitability in the United States.Ford is selling UK-based Jaguar and Land Rover as it continues efforts to streamline its operations and return to long term profitability in the United States.
It is estimated that the sale of Jaguar and Land Rover could raise as much as $1.5bn (£750m).It is estimated that the sale of Jaguar and Land Rover could raise as much as $1.5bn (£750m).
Jaguar has about 10,000 staff at sites in Coventry, Birmingham and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire.Jaguar has about 10,000 staff at sites in Coventry, Birmingham and Liverpool, while Land Rover employs about 9,000 in the West Midlands and Warwickshire.
Ford announced plans to sell Jaguar and Land Rover earlier this year.Ford announced plans to sell Jaguar and Land Rover earlier this year.