P. M. BRIEFING : Ford, Saab Agree to End Talks

Ford Motor Co. said today it has agreed with Swedish car maker Saab-Scania to discontinue discussions aimed at reaching a possible partnership or equity arrangement.

Ford confirmed early last month that it had been discussing a possible arrangement with Saab, with sources saying the nation’s No. 2 auto maker could possibly buy a 50% interest in Saab’s car making operations.

It is expected that breaking off talks between Ford and Saab may drive up the price of Jaguar’s stock, since Ford has been stalking the British luxury car maker by buying up to 10.4% of its stock in a deal estimated at between $190 million and $210 million.

In Detroit, Ford spokesman Bert Serre said the negotiations with Saab, which were on extremely friendly terms, do not affect its plans concerning Jaguar.

Ford announced earlier this week that it had raised its stake in Jaguar despite being called “unwelcome” by the British firm. Ford is expected to acquire up to 15% shortly.