Sumitomo, Tata Motors May Buy Ford's Mazda Shares, Nikkei Says

By Mayumi Otsuma

Oct. 11 (Bloomberg) -- Sumitomo Corp. and Tata Motors Ltd. are among the potential buyers for shares in Mazda Motor Corp. that Ford Motor Co. is trying to sell, Nikkei English News reported, without saying where it obtained information.

Ford, which owns a third of the Japanese automaker, is considering selling some of those shares to raise funds, Nikkei said. A Mazda executive acknowledged the company is preparing for potential sales by Ford, Nikkei said, adding that Japanese competitors are unlikely to buy the shares.

State-run broadcaster NHK earlier reported that Ford asked Japanese companies to buy Mazda shares from it.

Mazda has nothing to announce, according to a statement the carmaker released in Tokyo today. Ford spokesman Mark Truby did not immediately return a phone call seeking comment.

Debasis Ray, a spokesman for Mumbai-based Tata Motors, declined to comment. A call to Sumitomo's Tokyo office went unanswered.


U.S. automakers are facing financial trouble as the worsening credit crisis makes it harder for buyers to get loans and dealers to finance operations. S&P said this week it may further trim credit ratings for General Motors Corp. and Ford on forecasts for 2009 auto demand to fall to its lowest since 1992.

To contact the reporter on this story: Mayumi Otsuma in Tokyo at motsuma@bloomberg.net