Daimler to sell stake in Tata Motors

Daimler to sell stake in Tata Motors

Daimler is struggling in the tough economic climate and weakening global demand for luxury automobiles has lead to large 2009 losses.

According to recent reports Daimler is now looking to raise money to rebuild its business in developed regions by selling its 25.6 million shares of Tata Motors stock. The share sell out should net the German automaker an estimated $429 million USD. Shares of Tata Motors are doing well with stock up 19 percent since February 26, so Daimler stands to earn some big bucks from the sale.

Existing european markets and the blossoming Chinese market are Daimler’s focus now with all money to be concentrated in these regions. However, while Daimler is selling, Tata isn’t keen on buying, stating that its collection of companies isn’t interested in purchasing the shares. This leaves Daimler attempting to sell the stocks on the open market in block deals, which will shift large amounts of shares at once.

Daimler’s break from Tata is set to be fairly clean with the two companies not currently working on any joint ventures together. Analysts reportedly don’t believe Daimler’s sale of Tata shares will affect the Indian automaker’s stock price.

Daimler is struggling in the tough economic climate and weakening global demand for luxury automobiles has lead to large 2009 losses.

According to recent reports Daimler is now looking to raise money to rebuild its business in developed regions by selling its 25.6 million shares of Tata Motors stock. The share sell out should net the German automaker an estimated $429 million USD. Shares of Tata Motors are doing well with stock up 19 percent since February 26, so Daimler stands to earn some big bucks from the sale.

Existing european markets and the blossoming Chinese market are Daimler’s focus now with all money to be concentrated in these regions. However, while Daimler is selling, Tata isn’t keen on buying, stating that its collection of companies isn’t interested in purchasing the shares. This leaves Daimler attempting to sell the stocks on the open market in block deals, which will shift large amounts of shares at once.

Daimler’s break from Tata is set to be fairly clean with the two companies not currently working on any joint ventures together. Analysts reportedly don’t believe Daimler’s sale of Tata shares will affect the Indian automaker’s stock price.

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