P.M. BRIEFING : Jaguar Discussing Pact With GM, Possible Sale of Minority Stake

Jaguar PLC, British luxury auto maker, said today it is holding talks with General Motors Corp. about a possible cooperative operating agreement.

Jaguar said that General Motors is considering buying a minority stake in Jaguar as part of such an agreement.

The news confirmed the expected tug-of-war between GM and Ford Motor Co. over Jaguar.

The announcement was made after London’s Stock Exchange closed. Jaguar finished at $10.82 a share, down 73 cents. Trading has been very heavy since Friday, when Ford, which previously owned 1% of Jaguar, received U.S. regulatory clearance to buy up to 15%.

Ford announced Sept. 19 that it wanted to buy up to 15% of Jaguar and left open the option of making a full bid for the British company.

Jaguar characterized Ford’s stake-buying as unwelcome and said it wants to remain independent. However, money-losing Jaguar also has said it might be interested in building ties with a major auto company.

Jaguar was widely believed to be holding talks with General Motors.

Jaguar’s rules of association prohibit any shareholder from taking more than a 15% stake before the end of 1990 and give the British government a “golden” share with which it may block any bid for the formerly state-owned company.