Potential bidders tour Ford’s Halewood car plant

Oct 1 2007 by Neil Hodgson, Liverpool Daily Post

BUYERS leading the race for Merseyside’s Jaguar and Land Rover have been given tours of the Halewood car plant.

Private equity group Terra Firma is understood to be the latest bidder considering a buyout, which would include the factory and its 2,400 staff.

An insider at the plant, which makes the Jaguar X-Type range and Land Rover’s new Freelander 2 4x4 model, said: “We have seen a few people touring the production floor over the past few weeks, and it is obvious what they are there for.”

But morale was still good among the workforce, despite the likelihood of the plant being sold by parent company Ford.

The latest reports claim Terra Firma, which has bases in London and Frankfurt and recently bought music group EMI, raise doubts over whether it would continue with a bid for the two prestigious car marques.

But it is reported to have requested sale documents from Ford and already carried out some due diligence – checks into the financial stability of the business – for a possible bid.

Terra Firma declined to comment on its interest in Jaguar or Land Rover.

Other prospective bidders are believed to include fellow private equity groups Cerberus Capital Management, TPG, Ripplewood Holdings, Apollo Management and One Equity Partners. Indian car makers Tata and Mahindra & Mahindra are also understood to be keen on bidding.

Ford is expected to ask potential bidders to submit their indicative offers this month.

But bidders may hold off for the outcome of wage negotiations due to start at Land Rover next week.