Tata Motors Shares Slide after Daimler's Exit

March 9, 2010
Daimler held a 15% stake in Tata in previous decades, which had shrunk to 5% due to Tata Motors' expanding equity base.

Shares of India's largest vehicle maker Tata Motors were down 3% on March 9 after Daimler sold its stake in the company.

Reacting to the news, Tata Motors shares fell as much as 5.86% to a day's low of 750 rupees, before recovering on bargain hunting to 770.9, still down 3.24% or 25.85 rupees.

The two groups go back to 1954, when they began to work together in the field of heavy trucks, in which Daimler is now the world leader.

A Tata Motors spokesman declined to comment on the sale. It could not be immediately confirmed who had bought the shares.

Analysts said there would be no major impact if Daimler exited Tata Motors.

"Daimler would get more funds, it appears to be a business decision," said Mahantesh Sabarad, auto analyst with Mumbai-based Centrum Broking.

Daimler held a 15% stake in Tata in previous decades, which had shrunk to 5% due to Tata Motors' expanding equity base.

Copyright Agence France-Presse, 2010

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