Tata Motors to raise $1b for expansion

India's Tata Motors, expected to clinch a deal soon to buy British luxury car brands Jaguar and Land Rover, said Tuesday it would raise up to one billion dollars to fund its expansion drive.
The announcement came as ailing US carmaker Ford was in talks with Tata Motors to sell the Jaguar and Land Rover marques in a deal analysts say would give the Indian firm a major technological boost.
The board of directors of Tata Motors "has in principle approved, subject to other approvals as may be required, raising of additional long-term resources up to 40 billion rupees (one billion dollars)," a company statement said.
"The company has major growth plans for expanding its position in the domestic and global markets in both the commercial vehicle and passenger vehicle business," company spokesman Debasis Ray said in the statement.
"This will be achieved by upgrading and enhancing the company's product portfolio, expanding manufacturing facilities in India and strategic acquisitions/alliances in India and abroad," he said.
Ford named Tata as the preferred bidder for the exclusive Jaguar and Land Rover marques in January.
"The acquisition opportunities will have to be financed upfront," Ray said. The funds "are being raised to part-finance overall funding requirements to meet some of the strategic plans."