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| UK asks Tatas to accept revised JLR proposal or risk the plan |
| Press Trust of India / London Jul 19, 2009, 17:44 IST |
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The UK government has asked Indian conglomerate Tatas to accept a revised proposal to guarantee hundreds of millions of pounds of short-term funding for luxury brands Jaguar Land Rover (JLR) or risk the plan being taken off, says a media report.
UK Business Secretary Lord Mandelson has warned Tatas -- 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, The Telegraph has reported.
Quoting people close to the situation, the report said, "...ministers were surprised that Tatas had not yet provided a response to the latest proposal".
The Telegraph said the deal proposed by the British 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 Jaguar Land Rover.
"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 last night whether the new terms are acceptable to Tata," the report said.
It also added the "government was becoming increasingly frustrated with the stance adopted by the Indian company".
The publication noted that the government, which was not available to comment on the negotiations with Tatas, is being advised by KPMG and Rothschild.
Attributing to Citigroup and Standard Chartered, who are advising Tata Motors, the report said that discussions were "ongoing".
Tata Motors acquired Jaguar Land Rover from the US car maker Ford Motor last year for about $2.3 billion.
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