Indian truck maker Eicher Motors has no plans to sell a further stake in the company to DaimlerChrysler AG , but has been approached by some global truck makers, a top official told Reuters on Friday.
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The news agency said Eicher chief executive A Ramasubramanian’s comments came after daily newspaper The Economic Times, quoting market sources, reported that Daimler was likely to buy shares from Eicher’s founders to raise its holding to 24% from 3.6%. Eicher’s founders own 58.6% of the Indian firm.
“To my knowledge there is no such thing at the moment,” Ramasubramanian told Reuters. “About tomorrow, I can’t say anything.”
The newspaper reportedly added that Daimler would also make an open offer to public shareholders for an additional 20% in a bid to meet Indian market regulations.
Any firm which acquires 15% or more in an Indian company is required by the market regulator to make an open offer for a further holding of 20%, Reuters said.
Eicher was not “actively seeking” any partner, though some global truck makers had approached it, Ramasubramanian reportedly said, without naming them.
A DaimlerChrysler truck division spokeswoman told Reuters “we are continuing our talks with different partners.”
Daimler’s truck chief said in August the company was holding talks with India’s top truck and bus maker, Tata Motors, and Eicher, to expand current capital links and co-operation, Reuters noted.
Commentators reportedly see a larger role for overseas companies in the Indian market.
“There is no other alternative for Eicher but to align with a global firm. They need the technology,” Religare analyst Arvind Jain told Reuters.
Larger trucks were now needed in India as road networks have improved, Jain reportedly said, adding that Eicher could turn into a sourcing base for Daimler and offer its Indian distribution network to the global truck maker.
