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http://money.cnn.com/news/newsfeeds/articles/djf500/200803180122DOWJONESDJONLINE000060_FORTUNE5.htm
HONG KONG -(Dow Jones)- Tata Motors Ltd. (TTM) has signed a US$3 billion bridging loan with Citigroup Inc. and JPMorgan Chase & Co. (JPM) for its purchase of Ford Motor Co.'s (F) Jaguar and Land Rover brands, a person familiar with the deal said Tuesday.
The loan, illustrating that U.S. banks continue to lend in Asia despite the credit crunch elsewhere, is a one-year bridging loan, and exceeds the US$2 billion price tag for the acquisition analysts had initially expected.
Tata Motors had named Citigroup and JPMorgan, its financial advisers on the acquisition, to arrange the financing with a range of other international and domestic banks taking part in the talks.
Citigroup, which was involved on the re-financing package for Tata Steel Ltd.'s US$11.3 billion takeover of Anglo-Dutch steelmaker Corus Group PLC last year, declined to comment. JPMorgan wasn't immediately available for comment.
Tata Motors and Tata Steel are part of Indian conglomerate Tata Group.
Ford hired Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) in June to run an auction of the two units, part of its Premier Automotive Group, because it wanted to concentrate on its core business in the U.S. market.
Tata beat trade and private equity rival bidders in the auction including JPMorgan unit One Equity Partners, whose executives include former Ford Chief Executive Jacques Nasser, and Indian car maker Mahindra & Mahindra Ltd. ( 500520.BY).
-By Nisha Gopalan, Dow Jones Newswires; 852-2832-2343; nisha.gopalan@ dowjones.com
HONG KONG -(Dow Jones)- Tata Motors Ltd. (TTM) has signed a US$3 billion bridging loan with Citigroup Inc. and JPMorgan Chase & Co. (JPM) for its purchase of Ford Motor Co.'s (F) Jaguar and Land Rover brands, a person familiar with the deal said Tuesday.
The loan, illustrating that U.S. banks continue to lend in Asia despite the credit crunch elsewhere, is a one-year bridging loan, and exceeds the US$2 billion price tag for the acquisition analysts had initially expected.
Tata Motors had named Citigroup and JPMorgan, its financial advisers on the acquisition, to arrange the financing with a range of other international and domestic banks taking part in the talks.
Citigroup, which was involved on the re-financing package for Tata Steel Ltd.'s US$11.3 billion takeover of Anglo-Dutch steelmaker Corus Group PLC last year, declined to comment. JPMorgan wasn't immediately available for comment.
Tata Motors and Tata Steel are part of Indian conglomerate Tata Group.
Ford hired Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) in June to run an auction of the two units, part of its Premier Automotive Group, because it wanted to concentrate on its core business in the U.S. market.
Tata beat trade and private equity rival bidders in the auction including JPMorgan unit One Equity Partners, whose executives include former Ford Chief Executive Jacques Nasser, and Indian car maker Mahindra & Mahindra Ltd. ( 500520.BY).
-By Nisha Gopalan, Dow Jones Newswires; 852-2832-2343; nisha.gopalan@ dowjones.com
