Tata to buy Ford's Jaguar/Land Rover Weds - sources

By Pete Harrison

LONDON (Reuters) - Ford Motor Co will announce the sale of its UK luxury brands Jaguar and Land Rover to India's Tata Motors on Wednesday, according to sources close to the deal.

One of the sources knocked down reports on Indian television on Tuesday that a $2.65 billion deal had already been closed and would be announced at around 1830 GMT in London.

"That figure of $2.65 billion is highly unlikely," one source close to the deal said of the report on news channel NDTV Profit. "You have to come south from that by quite a bit."

An announcement of the deal had been expected at the start of this month, for around $2 billion, but it was delayed as the two firms discussed their future relationship, including technology sharing and Ford's provision of engines and body parts for the two brands.

Tata, India's top vehicle maker, has been in talks with Ford since it was chosen as the frontrunner to buy Jaguar and Land Rover a few days into 2008.

A Tata Group spokesman said discussions were still going on and the company had no guidance to give on the deal. "We have nothing to tell you now," he said.

Ahead of the TV report, shares in Tata Motors rose 2.7 percent to a three-week closing high of 679.95 rupees, in a Mumbai market that surged 6.1 percent.

Ford shares were down 1.3 percent at around $5.88 at 1456 GMT.