DealZone

The Big Sale at Ford

March 25, 2008

Logos of the carmakers Jaguar and Land Rover are pictured during the first media day of the 78th Geneva Car Show at the Palexpo in Geneva

¬†Ford‘s soon-to-be-signed sale of Jaguar and Land Rover to Tata Motors could bring in as much as $2.65 billion, according to local TV, or $2 billion according to the FT. Though the stage appears to be set, a Tata Group spokesman told Reuters discussions were ongoing. Tata Motors, India’s top vehicle maker maker of trucks and busses, received union backing for the deal and was named the front-runner in January by Ford, which is seeking to shore up its balance sheet and reduce debt.

JPMorgan‘s revised takeover offer for Bear Stearns is a “high risk transaction,” Punk Ziegel analyst Richard Bove said after JPMorgan boosted its all-stock offer five-fold to about $10 a share. “What is most disturbing about this deal is that it uses a great deal of Morgan capital to buy a company that is losing market share, in a series of businesses that are declining in size, with a top management team that is best described as sclerotic,” the veteran bank watcher wrote in a note to clients. “Investors believe that JPMorgan is underbidding for Bear Stearns… I do not. … Bear Stearns is a deeply troubled company which would have no value if the Federal Reserve had not stepped in to bail it out.”

China’s state-owned aluminum giant Chinalco - which teamed up last month with Alcoa to buy a $14 billion stake in Rio Tinto - may spend more than $4 billion this year on acquisitions at home and abroad, according to the South China Morning Post. That’s no great pile of investment. BHP has bid $147 billion for Rio. Though the company did not specify targets, it said non-ferrous metals would be the main focus.

Top Chinese chipmaker Semiconductor Manufacturing International Corp said it was in advanced talks to sell shares to a strategic investor, sparking a 16 percent surge in its shares. The news comes one year after media reports that the company hired two investment banks to find a strategic partner in a search that ultimately failed to win a suitor. SMIC’s market capitalization is around $1.1 billion.

Singapore state investor Temasek is close to selling its 42 percent stake in Bank Internasional Indonesia for over $1 billion, but not to HSBC. Europe’s biggest bank dropped out of the race, leaving Malayan Banking, Bank of China and late entrant Kookmin of South Korea to duke it out.

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Tata Motors is not India’s top vehicle maker…

Posted by Sid | Report as abusive
 

Thanks much for spotting that.

 

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