Posts
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-inr-small.gif)
London: In a candid admission, perhaps for the first time, Ratan Tata has said his two mega acquisitions—Anglo Dutch steelmaker Corus and British marquee Jaguar Land Rover—were done at an "inopportune time'' and his company might have gone "too far too fast''.
In an interview published in the Sunday Times, London, Tata admitted with hindsight that he might have gone too far too fast, but said that nobody saw the economic recession coming.
"If one had known there was going to be a meltdown, then yes (Tata went too far), but nobody knew. Both the acquisitions were made, I would say, at an inopportune time in the sense that they were near the top of the market in terms of price,'' Tata told the Sunday Times.
Recession is making Tata's recent international spending spree look ill-timed as he bought Corus and JLR just as the boom reached its peak.
Tata Steel paid £6.7 billion for Corus, which, when measured as a multiple of the target company's earnings, made it the most expensive steel deal to date. A year later, Tata Motors paid £1.15 billion for JLR.
Tata is one of the largest inward investors in Britain. Besides JLR and Corus, which together employ about 40,000 people, the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and and IT.
Meanwhile, JLR is planning to raise up to £1 billion by September to keep the cashstarved company afloat without the British government's help, according to British newspaper The Guardian.
The report says the Tatas have mandated financial advisor Citigroup to find banks with a solid credit rating to underwrite some of the £340 million loan pledged by the European Investment Bank. The Tatas are also seeking to tap the debt-markets to help secure a £500 million to £1 billion short-term financing package. AGENCIES Tatas to raise $1.5bn for JLR
London: Tata group-owned Jaguar Land Rover (JLR) plans to raise nearly $1.5 billion—or Rs 7,391 crore—by September to keep the cash-starved company afloat without the British government's help, according to British media reports.
According to a report published in The Guardian, the Tatas have mandated financial adviser Citigroup to find banks with solid credit rating, prepared to underwrite some of the £340-million loan pledged by the European Investment Bank (EIB). The Tatas are also seeking to tap the debt-markets to help secure the £500 million-1 billion short-term financing package needed, the newspaper added.
In an interview to another UK publication—The Sunday Times—group chairman Ratan Tata criticised the British government for ignoring the manufacturing sector and said he was not asking for a bailout but only a "facilitation of access to credit on commercial terms'' for his businesses in the United Kingdom.
Reacting to a report that UK government has denied funding to JLR, Tata said: "We're responsible for the fortunes of the company but this is a bone-dry situation in terms of access to credit. Nobody can operate on that basis unless you have large cash balances, which we don't. My concern is that the government doesn't appear to care about manufacturing.''
"I would like to see the British government playing only one role. It controls the banks, and all I seek is the facilitation to provide access to credit on commercial terms. It's not a bailout,'' Tata said.
Tata is one of the largest investors in Britain. Besides JLR and Corus, which together employ about 40,000 people, the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and IT. "Even if Tata can raise more debt and find banks willing to underwrite part of the EIB loans, the cost of the financing will be very high,'' The Guardian said.
The government had revealed its conditions for underwriting part of the EIB loan for the Tatas. These included giving the government the right to appoint a chairman to JLR, a guarantee that the Tatas would not make any redundancies and provide an additional large injection into the firm. The Tatas have, however, rejected the government's conditions for underwriting some of the EIB loan to secure immediate and short-term help. "The Indian firm, which remains committed to JLR, believes it can secure better terms independently,'' the daily said.
Besides, talks are continuing about putting together a longer-term financing package involving a consortium of banks, led by state-controlled Lloyds Banking Group, The Guardian said.
Tata Motors bought JLR from Ford in April 2008, paying £1.15 billion. Tata has asked the UK government for financial assistance as sales at JLR has slumped due to recession and lack of finance. "In April Jaguar's UK sales were down 21% on the same month last year. Land Rover's were down 47%,'' The Sunday Times added.
Going forward, Tata said, "... I would like to see us coming out of the recession with these new products (E-type and fuel efficient hybrids) in place. What would be sad—remorseful—is if the meltdown continues and we can't get access to funds. The first thing that will happen will be that these projects will go on hold, and we will come out of the recession just as we went in.''
Recession is making Tata's recent international spending spree look ill-timed as he bought Corus and JLR just as the boom reached its peak. Tata Steel paid £6.7 billion for Corus, which, when measured as a multiple of the target company's earnings, made it the most expensive steel deal to date. A year later Tata Motors paid £1.15 billion for JLR.
Tata also said that he would like to see JLR coming out with new products, including a sports car, provided his cash-starved company gets access to funds. Tata said Jaguar has dusted off plans for a sports car. "The E-type was iconic, so we have resurrected it,'' Tata said, adding that his company has also accelerated development of fuel-efficient hybrids. AGENCIES
Plans to tap debt-markets to help secure the £500 million to £1 billion short-term financing packaged
Criticising the UK government for ignoring the manufacturing sector, Ratan Tata said that he was not asking for a bailout but only a "facilitation of access to credit on commercial terms" for his businesses in the UK
JLR would like to come out with new products, including a sports car, provided the cash-starved company gets access to funds, Tata said, adding that the company has accelerated development of fuel-efficient hybrids
In an interview published in the Sunday Times, London, Tata admitted with hindsight that he might have gone too far too fast, but said that nobody saw the economic recession coming.
"If one had known there was going to be a meltdown, then yes (Tata went too far), but nobody knew. Both the acquisitions were made, I would say, at an inopportune time in the sense that they were near the top of the market in terms of price,'' Tata told the Sunday Times.
Recession is making Tata's recent international spending spree look ill-timed as he bought Corus and JLR just as the boom reached its peak.
Tata Steel paid £6.7 billion for Corus, which, when measured as a multiple of the target company's earnings, made it the most expensive steel deal to date. A year later, Tata Motors paid £1.15 billion for JLR.
Tata is one of the largest inward investors in Britain. Besides JLR and Corus, which together employ about 40,000 people, the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and and IT.
Meanwhile, JLR is planning to raise up to £1 billion by September to keep the cashstarved company afloat without the British government's help, according to British newspaper The Guardian.
The report says the Tatas have mandated financial advisor Citigroup to find banks with a solid credit rating to underwrite some of the £340 million loan pledged by the European Investment Bank. The Tatas are also seeking to tap the debt-markets to help secure a £500 million to £1 billion short-term financing package. AGENCIES Tatas to raise $1.5bn for JLR
London: Tata group-owned Jaguar Land Rover (JLR) plans to raise nearly $1.5 billion—or Rs 7,391 crore—by September to keep the cash-starved company afloat without the British government's help, according to British media reports.
According to a report published in The Guardian, the Tatas have mandated financial adviser Citigroup to find banks with solid credit rating, prepared to underwrite some of the £340-million loan pledged by the European Investment Bank (EIB). The Tatas are also seeking to tap the debt-markets to help secure the £500 million-1 billion short-term financing package needed, the newspaper added.
In an interview to another UK publication—The Sunday Times—group chairman Ratan Tata criticised the British government for ignoring the manufacturing sector and said he was not asking for a bailout but only a "facilitation of access to credit on commercial terms'' for his businesses in the United Kingdom.
Reacting to a report that UK government has denied funding to JLR, Tata said: "We're responsible for the fortunes of the company but this is a bone-dry situation in terms of access to credit. Nobody can operate on that basis unless you have large cash balances, which we don't. My concern is that the government doesn't appear to care about manufacturing.''
"I would like to see the British government playing only one role. It controls the banks, and all I seek is the facilitation to provide access to credit on commercial terms. It's not a bailout,'' Tata said.
Tata is one of the largest investors in Britain. Besides JLR and Corus, which together employ about 40,000 people, the Indian conglomerate also owns Tetley Tea and is also present in the UK through other businesses such as chemicals and IT. "Even if Tata can raise more debt and find banks willing to underwrite part of the EIB loans, the cost of the financing will be very high,'' The Guardian said.
The government had revealed its conditions for underwriting part of the EIB loan for the Tatas. These included giving the government the right to appoint a chairman to JLR, a guarantee that the Tatas would not make any redundancies and provide an additional large injection into the firm. The Tatas have, however, rejected the government's conditions for underwriting some of the EIB loan to secure immediate and short-term help. "The Indian firm, which remains committed to JLR, believes it can secure better terms independently,'' the daily said.
Besides, talks are continuing about putting together a longer-term financing package involving a consortium of banks, led by state-controlled Lloyds Banking Group, The Guardian said.
Tata Motors bought JLR from Ford in April 2008, paying £1.15 billion. Tata has asked the UK government for financial assistance as sales at JLR has slumped due to recession and lack of finance. "In April Jaguar's UK sales were down 21% on the same month last year. Land Rover's were down 47%,'' The Sunday Times added.
Going forward, Tata said, "... I would like to see us coming out of the recession with these new products (E-type and fuel efficient hybrids) in place. What would be sad—remorseful—is if the meltdown continues and we can't get access to funds. The first thing that will happen will be that these projects will go on hold, and we will come out of the recession just as we went in.''
Recession is making Tata's recent international spending spree look ill-timed as he bought Corus and JLR just as the boom reached its peak. Tata Steel paid £6.7 billion for Corus, which, when measured as a multiple of the target company's earnings, made it the most expensive steel deal to date. A year later Tata Motors paid £1.15 billion for JLR.
Tata also said that he would like to see JLR coming out with new products, including a sports car, provided his cash-starved company gets access to funds. Tata said Jaguar has dusted off plans for a sports car. "The E-type was iconic, so we have resurrected it,'' Tata said, adding that his company has also accelerated development of fuel-efficient hybrids. AGENCIES
Plans to tap debt-markets to help secure the £500 million to £1 billion short-term financing packaged
Criticising the UK government for ignoring the manufacturing sector, Ratan Tata said that he was not asking for a bailout but only a "facilitation of access to credit on commercial terms" for his businesses in the UK
JLR would like to come out with new products, including a sports car, provided the cash-starved company gets access to funds, Tata said, adding that the company has accelerated development of fuel-efficient hybrids
RATAN TATA | CHAIRMAN, TATA GROUP
SUBSCRIBE TO Free SMS Alerts on India Stock Markets
OR SEND SMS "ON WAY2TRADE " TO 9870807070
DisasterAwareness | Health | Commodities
Chat: 
Google Talk: ways2invest 
Y! messenger: wilint
Google Talk: ways2invest Y! messenger: wilintContact Me: 
0 comments:
Post a Comment