Tata recruits Citigroup as adviser for JLR assistance: report
Press Trust of India / London/New Delhi Jan 11, 2009, 19:56 IST
Seeking about one billion pound help from the British government to overcome financial crunch facing the prized acquisitions Jaguar and Land Rover (JLR), 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 today that "India's Tata has recruited the American bank Citigroup to advise it in its talks with the government over state assistance for JLR, the carmaker".
The report said that "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 - JLR deal. Last year, Tata bought JLR from Ford for $2.3 billion. Sales of Land Rovers in particular have been hard hit by the credit crunch.
well gee it looks like a real sticky wicket from here. tata motors buys land rover and jaguar from a struggling ford motor company and now tata is struggling and they are asked advise from a troubled citi.
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