Tatas In Talks With Fiat For Jaguar, Rover

As the race for Jaguar and Rover assets hots up with equity players throwing in their muscle Tata Motors has come out with unique strategy. The company now wants to capitalise on its alliance with Fiat. According to sources Tata Motors is in talks with Fiat to jointly bid for Jaguar and Rover assets.

Fiat might pick up minority stake in the venture if Tatas win the bid. Ratan Tata is seeing synergy only in the Land Rover acquisition. Both the companies will finalise plans on joint bidding before the second round of bidding which scheduled for mid October.

While Citigroup, JP Morgan are advising Tata Motors on the deal, sources say that Tata Motors is through the first round of bidding and is currently in active talks with Jaguar and Land Rover managements.The official line is of course somewhat different. Analysts are all for the Tata-Fiat joint bid, since the high end car space is not really Tata''s domain. While Fiat will definitely extract sufficient synergies from Jaguar acquisition and Land Rover will fill the SUV gap in its portfolio.