Daimler Said to Be Selling $428 Million Tata Stake
Daimler Said to Be Selling $428 Million Tata Stake
German carmaker plans to exit Tata Motors by selling its entire 5.34 per cent stake in the Indian truck and car manufacturer. The sale is expected to fetch Daimler $429 million (about Rs 1,948 crore), people close to the development said.
Stuttgart, Germany-based Daimler is conserving cash as auto markets remain depressed by the global financial crisis and after consumer incentives by European governments expired. The Tata Motors shares have become expendable as Daimler expands its Fuso truck unit outside Japan and the Indian manufacturer takes on Daimler’s Mercedes-Benz cars division.
“The stake hasn’t taken Daimler anywhere in the last 40 years or so, and having cash these days is a luxury,” said Arndt Ellinghorst, an analyst with Credit Suisse in London who has an “outperform” rating on Daimler shares. The German carmaker may be looking to “streamline” its portfolio as it focuses on new truck ventures in Russia and the search for a partner for small cars, he said.
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