India Mahindra doing due diligence on Ford brands-FT

MUMBAI, Aug 30 (Reuters) - India's Mahindra & Mahindra Ltd (MAHM.BO) is doing due diligence on Ford's (F.N) Jaguar and Land Rover units, the Financial Times said on Thursday, citing people close to the situation.

Mahindra was more interested in utility maker Land Rover, but Ford planned to bundle the sale of Land Rover together with luxury marque Jaguar, the FT reported.

"Terms of a deal would very likely prevent the spinning off of Jaguar," the paper said.

Some Indian newspapers have also said Mahindra, India's top tractor and utility vehicle maker, was keen only on Land Rover, as it would address the need for a premium sport utility in its line-up, while Jaguar would not fit as well.

Mahindra is taking its Scorpio SUV to more overseas markets including the United States, where it will sell from 2008.

A Mahindra spokesman did not return calls seeking comment.

A source familiar with the matter told Reuters in July Tata Motors Ltd (TAMO.BO) (TTM.N) and Mahindra, as well as U.S. buyout firms TPG [TPG.UL] and Ripplewood were among those who had expressed an interest in a possible bid for the brands. The Financial Times on Thursday said Cerberus Capital Management and One Equity Partners were also in the fray.

Bigger rival Tata Group's chairman, Ratan Tata, said last week the company was interested in the Ford brands as they would give the company a more global presence. A company spokesman declined comment on Thursday.

Ford said last week it planned to have more details on the sale by the end of 2007 or early 2008.