Web of Board-Room Connections Could Be Impetus Behind the Ford-Tata Deal

(NewsVisual, powered by IntellectSpace) -- In a deal that’s probably attributed to strong board-room connections, The Wall Street Journal reported in an article on Tuesday that the Ford Motor Co (NYSE: F) and Tata Motors Ltd seem close to striking a deal in which the former company would sell its Jaguar and Land Rover properties to Tata.

NewsVisual created an IntellectSpace Knowledge Map that shows three main axes of connections between the members of the Boards of Directors of Ford and Tata that could have been the impetus behind the negotiations.

The strongest axis of board room connections between them, however, runs through England’s Royal Academy of Engineering:

This institution connects the Ford Director Alan Mulally to Tata Directors Jamshed Irani and R A Mashelkar, since all three are members or fellows of the Royal Academy of Engineering.

Consequently, it would be highly improbably for these three Directors not to be well acquainted with each other, especially given their service on the boards of auto companies.

Moreover, this seems like the most likely connection from which any negotiations could have started.

The Knowledge Map shows that a second axis of likely personal connections lies through Harvard University:

Tata Motors Chairman Ratan N Tata earned an MBA degree from Harvard University in 1975.  Consequently, Tata could possibly know Ford Director Edsel B Ford II, who completed the Harvard Management program in 1981.  Or Tata could potentially know also Ford Director Ellen R Marram, who also earned an MBA degree from Harvard University in 1970.

The third axis of personal connections that the Map illustrates is through the NYSE Euronext Inc:

Specifically, Chairman Tata could also be acquainted with Ford Director Joma Ollila, who also happens to be the Chairman of Nokia Corp, Finland, via the International Advisory Committee to the NYSE Euronext Inc on which they both serve as members.

Although the Knowledge Map cannot offer proof positive that these connections spawned the talks for a deal, it does at least seem probably that the personal connections it points to could have served some role.

(Note: the information contained and presented in Knowledge Maps is public information from the Securities and Exchange Commission of the United States of America).

Click here for an interactive version of this IntellectSpace Knowledge Map.