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Market turmoil hits Jaguar sale | Market turmoil hits Jaguar sale |
(about 1 hour later) | |
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 said the stock market turbulence "absolutely is an issue" regarding the disposals. | |
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 slowdown | Private 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, 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. |