Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, April 3, 2020

Article Excerpt

TATA MOTORS LIMITED (ADR), $4.08, symbol TTM on New York, is India’s largest automobile maker. The company is a leading global automobile manufacturer of cars, SUVs, pick-ups, trucks and buses. Its most prominent brand is Jaguar Land Rover, which it bought from Ford (symbol F on New York) for $2.3 billion in 2008. Giant Indian conglomerate Tata Group owns 43.7% of Tata Motors. On March 27, 2020, Tata Motors announced a plan to separate its passenger vehicle business, which includes Jaguar Land Rover, from its commercial vehicles segment. Overall car sales in the company’s key Indian market have been under tremendous pressure in the past couple of years. In February, passenger vehicle sales fell for the 16th consecutive month. That trend is likely to continue in the wake of the coronavirus. Tata Motors acknowledges that the COVID-19 outbreak has made the operation of its business even more challenging. By splitting off the passenger business, it hopes it can then form a strategic alliance with…