Bail-out talks still on - Jaguar

Stricken motor firm Jaguar Land Rover has refuted reports that its Indian owner has rejected a possible rescue package from the Government, saying talks are still ongoing.

Some commentators have said multinational conglomerate Tata is ready to pull out of discussions after balking at what were described as unreasonable demands from the Treasury.

But a spokesman at Jaguar insisted the British automotive business was unaware of any breakdown in talks, saying: "This has not come from anyone and it is as much as a surprise to us as it is to you.

"We have always said the talks would be difficult but they are ongoing."

Reports have Tata rejecting conditions for guarantees that would underpin multimillion-pound bank loans to ensure Jaguar Land Rover's stays afloat.

It is thought the dispute centres on the degree of control the Government would be given in return for putting taxpayers' money at risk by guaranteeing the loan.

The Government has apparently refused much of the request for guarantees for £450 million, instead offering £175 million of the European money for which Tata must pay 15% up front.

It is also believed to want a right to veto management decisions, appoint its own chairman and have a say in any future redundancies at the company which employs 14,500 people.

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