Bajaj, the Tata of the motorcycle world, has purchased an additional amount of KTM’s stock, raising its interest in the Austrian company to 25.86%. Bajaj had previously owned just over a 20% stake in the orange brand, and is indicating that it is not content with just its current amount.
This news comes with little surprise as Bajaj has telegraphed this acquisition and intent already when it gobble up an additional 14% of the company back in 2007. Rumors are now already forming as to whether Bajaj will try and consume a majority stake in KTM’s stock.
Strategically, this could allow KTM to weather the financial storm, as well as explore developing markets with greater fervor. Bajaj and KTM are already working together on several projects, and one of them is a highly efficient motorcycle to be produced in India (Bajaj’s home market). The KTM/Bajaj motorcycle should see the light of day around 2010. Other KTM motorcycles are to be sold in India under the Bajaj label.
Source: Bikes in the Fast Lane