Friday, February 12, 2010
Bajaj Auto in talks for KTM buyout
Indian motorcycle manufacturer Bajaj Auto, which already has a 30% stake in KTM, is expected to hike its stake to as much as 90% in the near future. While full details on this acquisition are not available yet, Bajaj and KTM are said to be in talks to finalise the deal as soon as possible. Bajaj may either increase its stake in KTM to 90% right away, or may first hike the stake to 51% and then, in a phased manner, up to 90%. Details on the final arrangement are expected to emerge over the next few days.
This deal will give Bajaj a major foothold in the European bike market and also open up avenues for launching bigger sportsbike from the KTM line-up in India, which is the second-largest market in the world for two-wheelers.
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