According to the Times of India, Daimler AG is preparing to sell its entire stake in Tata Motors. The German automaker will reportedly raise over $400 million by selling its five-percent holding in Tata. According to reports, Daimler is offering 25.6 million shares of Tata at four- to seven-percent below market value. Representatives from both companies have declined to comment.
Tata, with its popular and inexpensive Nano, is the largest automaker in India, and parent of both Jaguar and Land Rover. Its stock has risen 19 percent since Tata posted a profit for the second straight quarter in February.
In March last year, Daimler sold nine percent of itself to an Abu Dhabi investment firm for roughly $2.65 billion. The move was seen as a sign of the automaker’s immediate need for money to survive the global economic crisis.