Daimler dumping stake in Tata Motors

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MUMBAI/FRANKFURT (Reuters) -- Daimler AG is selling its entire stake in India's Tata Motors Ltd. to raise up to $429 million worth of shares, sources familiar with the matter said today.

Daimler is offering 25.6 million shares in India's largest vehicle maker at 737.4 rupees ($16.2) to 761.3 rupees each, which is 4 percent to 7 percent below the stock's close today of 796.75 rupees, sources said.

The ordinary shares represent a 5.34 percent stake in the firm. Daimler also owns 4.71 percent of Tata Motors on a fully diluted basis.

Media reports in India had earlier speculated that the German carmaker would look to exit its long-held stake in Tata Motors.


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Hmmm what does Daimler know.......

[Cirque du So-What]

1. What does Daimler know?

Perhaps they realize that Tata's quality system is shit and so are all the parts produced by their suppliers. I know this is anecdotal, but years ago I had the misfortune of dealing with an Indian supplier of ductile iron parts that had supplanted a US supplier. This single supplier consumed mass quantities of my working time, as I had to contend with their crap product and laughably poor quality system. I frequently made my views known to all & sundry who would listen, saying in effect, 'are we saving any money by doing business with these jacklegs...YET???!!!???'

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2. Federal Mogul thinks they are saving money dealing with them

and racers don't buy Speed Pro junk now because the quality is so bad.