Bajaj Finserv kills rumours of stake sale to Hathaway
09 Jun 2010
Bajaj Finserv today scotched rumours that it is in talks with Warren Buffett's Berkshire Hathaway to sell a stake in the company.
"We are not in talks with Berkshire for stake sale, nor aware of any plans by them to invest into our company," a company spokesman told Reuters.
Earlier, a number of publications, including Bloomberg and Indian financial news portal vcircle.com, had reported that Berkshire may pick up five to 10 per cent in Bajaj Finserv, the holding company of insurance entities Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance, from the open market.
If the reports have any basis, this would be Berkshire Hathway's first investment in India. Insurance and re-insurance are the main lines of business of Berkshire Hathaway.
Buffett announced in the annual meeting that he did not rule out investment in India.
Currently, the foreign direct investment limit for the sector is capped at 26 per cent, but the limit is expected to be raised to 49 per cent under Insurance Amendment Bill.