Volvo emerges front runner for buying stake in Eicher

Volvo, the world''s No 2 truckmaker, emerges as the front-runner to acquire a majority stake in Eicher Motors. Truckmaker Eicher has been in talks with various firms for a strategic partnership that would help it become a significant player in the heavy commercial vehicles (CV) segment.

Incidentally, late last week, the market was abuzz with speculation that Eicher was striking a deal with Volvo, spiralling its stock up by 8% to close at Rs 545 on the Bombay Stock Exchange. In the last one month, the Eicher stock has risen 27% on the BSE. Sources said Volvo would acquire the majority stake in the company either from the promoters or through a preferential route. It seems that JM Financials have managed the deal for Eicher.