26 December, 2007 : The much hyped bidding for Jaguar and Land Rover will reach a close soon. Ford is likely to announce its choice of preferred bidder by early 2008.

Ford prefers a bidder directly involved in the auto manufacturing business. As such, the Tata’s could be a likely choice. Latest news reports suggest that Ford has accepted Tata’s $2-billion bid and is likely to finalise the buyer by the end of the year. Tata’s have reportedly gotten their bid through having staved off advances from the other Indian bidder Mahindra & Mahindra and US private equity firm EquityOne run by former Ford CEO Jacques Nasser.

Ford is compelled to consider the welfare of the employees of its two companies which it has termed as “obligation to the employees of the two companies and the local community.” Apart from valuation, the bids include balance sheets for health, management freedom and restructuring elbow room. Ford will have one final meeting on the above mentioned issues before it takes a final decision.

Though both the brands up for sale have been struggling for a while, Jaguar is pinning its hopes on its new model XF which will hit European markets early next year. The success of this model will make it more favourable for the new buyer to turn the brand around.