Monday, July 30, 2007

Eicher founders may sell majority stake

Founders of truck maker Eicher Motors Ltd are exploring selling their majority holding to a global commercial vehicle maker, media reported on Monday quoting sources.

DaimlerChrysler, which already holds a 3.56 per cent indirect stake in the company, is tipped to be the front runner.

Daimler wanted a majority stake in Eicher as part of its long-term India strategy. Eicher's founders own about 58 per cent of the firm.

Eicher officials could not be immediately reached. The company last week said it plans to evaluate "strategic partnership opportunities."

It had clarified the plan was broadbased and it would evaluate all opportunities. Media reports have said global truck makers including Daimler and Hyundai Motor were eyeing a stake in Eicher.

Daimler, which also holds a 6.6 per cent stake in Tata Motors, imports the Actros range of trucks in India and also plans to assemble semi-knocked down trucks. It is building a plant in Maharashtra state to make 5,000 Mercedes cars a year.

No comments: