Friday, December 21, 2007 (London):

After fevered speculation this week over Tata's proposed buyout of the British carmakers Jaguar and Land Rover, a person close to the deal said on Friday a decision was only being expected in the New Year."We don't expect anything to happen between now and the New Year," said the source.

Key members of the Jaguar and Land Rover senior management are expected to be on Christmas leave beginning this weekend, the source said.Speculation on the deal, in which the Indian multinational Tata Group is the frontrunner, reached fever pitch this week after the Birmingham Post, reported that Tata were expected to be announced the winning bidders on Friday.However, the Financial Times reported on Friday that there were several sticking points that could yet undo the deal.

Detailing the process, the paper said the winner would have a period of exclusivity to hammer out agreements. Ford is expected to take the successful preferred bidder before the Jaguar and Land Rover pension trustees for further negotiations.

They would then begin the complicated negotiations required to reach a final arrangement.The successful bidder would have to sign an estimated 40 contracts as part of the takeover, ranging from engine production to the operation of information technology systems.

Emissions regulationsThere could be several more sticking points that could undo a deal, such as the cost of complying with stricter emissions regulations in Europe and whether the successful bidder would be permitted to use intellectual property belonging to Jaguar and Land Rover in other parts of the group.

This would be tricky for Tata Motors, which is expected to reap significant technology transfer benefits from the takeover, the newspaper said.Other reports Friday said Tata was understood to have been given significant access to the management, leaving rival bidders to conclude that the Indian group is in the lead.

By (ND)