The world's largest truck maker Daimler is understood to be selling off its residual stake in Tata Motors for over $400 million.
Daimler currently holds over 5 per cent stake in the country's largest auto company. According to banking sources close to the development, Citi is handling the deal.
When contacted, both Citi and Tata Motors spokespersons declined to comment. Daimler officials in Germany and India did not respond to queries via mails and text messages on the development.
However, in January Daimler group firm, Mercedes Benz India managing director and chief executive Wilfried Aulbur had said, "we are very happy with our relationship with the Tatas. We don't intend to sell the stake in the company."
In 2007, Tata Motors had given a no objection to the German firm's plans to set up its independent commercial vehicles business in the country.
Tatas entered into collaboration with Daimler Benz way back in 1954 for manufacturing commercial vehicles.
When Daimler started its manufacturing activity for Mercedes-Benz cars in the country in 1994, it began as a 51:49 joint venture between Daimler and Tata Motors, then known as Telco.
Currently, Daimler sells its Actros range of trucks in the country and is setting up a new commercial vehicle manufacturing facility in Chennai.
Tata Motors shares rose by 0.18 per cent and closed at Rs 796.75 on the Bombay Stock Exchange.
