By IANS
Mumbai : Tata Motors and Mahindra and Mahindra, two leading players in India's automobile sector, Thursday declined to comment on a report in a British newspaper that they were planning to bid for Jaguar and Land Rover.
Tata Motors official spokespersons refused to confirm the deal while managing director Ravi Kant's office declined to comment. Similarly, the official spokesman of Mahindra and Mahindra also refused to comment when IANS reached him.
The Daily Telegraph last week reported that the Tata firm was engaging an unidentified merchant banker to evaluate the merits of a joint offer for Jaguar and Land Rover, two top auto brands earmarked for disposal by Ford Motor Company.
Mahindra and Mahindra was to launch a rival bid, according to media reports.
Auto analysts here termed the report as speculation.
"We are not aware of any such deal. If the news is correct, what stops Tatas from formally announcing it?" asked an auto analyst with a leading Mumbai brokerage firm who requested anonymity.
Another analyst said: "Why should the Tatas spend $1.5 billion in acquiring Jaguar and Land Rover when they have their own large expansion plans? After all, the firm plans to invest Rs.120 billion in setting up new units for small cars, trucks and SUVs and also to expand the capacity of its existing units within the next three to four years."
Investors enthusiastically greeted the report. The Tata Motors share price rose 1.8 percent to Rs.739 on the Bombay Stock Exchange (BSE).