"Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas,," the newspaper said, citing sources close to the development.
MUMBAI (Reuters) - India's Tata Motors Ltd <TAMO.BO> is preparing for "an outright purchase" of Ford Motor Co's <F.N> Jaguar and Land Rover luxury brands, against an earlier plan for a majority stake, the Economic Times said on Wednesday.
"Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas,," the newspaper said, citing sources close to the development.
Ford earlier this month picked Tata Motors as the front-runner to the purchase of the two brands and said it would proceed with "focused negotiations at a more detailed level."
The deal, which is expected to be completed early this year, has been pegged at $1.5-$2.0 billion by analysts, and media reports had indicated Ford would hold a small stake in the two brands to ensure that supply contracts and jobs are protected.
!ADVERTISEMENT!"We are still in detailed and focused discussions with Tata Motors, and these discussions are confidential," a spokesman for Ford Motor told the paper. A spokesman for Tata Motors declined comment.
Ford has shown Tata Motors officials new model lines and planned products, the paper said. Ford officials and union members were expected to visit Tata Motors' plant in western India in a fortnight, the paper said.
(Reporting by Rina Chandran; Editing by Ranjit Gangadharan)
