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At Tata, Buyer's Remorse

Wall Street Journal Original article ›

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After some ill timed acquisitions Tata Sons is strapped for cash. The value of Tata Sons holdings in the group's 27 listed companies has halved in less than a year to under $25 billion. This leaves Tata Sons, the parent company of the Tata group, strapped for cash, as one way it raises cash is by offering its equity stakes as collateral to lenders. A cash crunch is evident at Tata Motors with $2 billion of debt from the acquisition of Jaguar Land Rover due by June. Tata has to get its banks to roll over this debt. And this week Tata Steel whose shares are down 76% in a year stated that Tata Sons has pledged 13.2% of the company as collateral against borrowings.

Tata Motors

01/14/2006

Tata Motors in the Indian and global automobile market.

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