Italy’s largest carmaker Fiat SpA is planning to join hands with India’s top corporate house Tatas in the latter’s bid to acquire Ford Motor’s British brands Jaguar and Land Rover, an Italian newspaper reported on Friday.

Without naming sources, a report in ‘Finanza e Mercati’ daily said Fiat was prepared to join Tata Motors as a minority partner for acquisition of Jaguar and Land Rover brands of the US-based global auto giant.

The two companies already have a partnership under which Tata Motors distributes the Italian company’s vehicles through its showrooms in India. The report said Tatas have set aside $1.5 billion for the bid, while the Italian firm would join as a minority partner at a later stage.

Ford expects the sale of its two European marques to be through either by this year-end or early next year. Cash-strapped Ford, which posted a loss of US$12.7 billion in 2006, has been looking to sell the two brands but has faced resistance from workers.

Tata Sons Chairman Ratan Tata had recently said that his group was interested in Jaguar and Land Rover brands.

Tata Motors could face competition from two former Ford executives who are reported to have joined hands with private equity firms for making separate bids. Another Indian company Mahindra & Mahindra is also reported to have started due diligence for the two leading brands.

However, no confirmation could be obtained from the Tatas about the possible tie-up with Fiat.