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Govt, Suzuki start talks for Maruti divestment

The government on Tuesday began negotiations with Suzuki for fixing the share price and premium for the ensuing Rs 4-billion rights issue of Maruti Udyog Ltd as the first step towards the divestment of its stake in the joint venture.

"We came here today (Tuesday) for the first round of talks," Shinzo Nakanishi, director (board member), overseas automobile marketing division of Suzuki, said in New Delhi. He, however, declined to divulge any other details.

Divestment secretary Pradeep Baijal said: "The talks would continue." He also did not divulge the details of the discussions between the two sides.

While Nakanishi was heading a three-member delegation of Suzuki, the Indian side was represented by Pradeep Baijal and heavy industry secretary Ravindra Gupta.

Sources, however, said the divestment department was hopeful of floating the rights issue in early March.

The government would put its remaining stake on the block in the next fiscal.

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