Foundry Daily News

TATA Motor warned to accept revised Jaguar Land Rover deal

<font face="Arial,sans-serif" size="2">It is reported that Lord Mandelson British Business secretary has warned TATA Motors, the owner of Jaguar Land Rover, to accept a revised proposal to guarantee hundreds of millions of pounds in short term funding or risk seeing it taken off the table. Following a fresh funding proposal that was made by the British Government earlier this month, Mr Mandelson warned TATA Motors recently.</font>

<font face="Arial,sans-serif" size="2">The revised deal proposed by the Government is understood to have removed a contentious condition contained in the original offer to which TATA objected that would have given the taxpayer board representation at the JLR.</font>

<font face="Arial,sans-serif" size="2">However, it includes a commitment that TATA would not be able to alter the car manufacturer’s business plan without the approval of ministers. It was unclear whether the new terms are acceptable to TATA.</font>

<font face="Arial,sans-serif" size="2">People close to the situation said that ministers were surprised that TATA had not yet provided a response to the latest proposal and said the Government was becoming increasingly frustrated with the stance adopted by the Indian company.</font>

<font face="Arial,sans-serif" size="2">Beside, at stake is a Government guarantee for GBP 290 million of European Investment Bank loans, while a separate short term commercial loan of up to GBP 200 million is also understood to be being negotiated by the company before a longer-term financing structure is established.</font>

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