New Delhi, April 22 (PTI): An aggressive bidding war could erupt for the government’s residual stake in Maruti as the company’s parent Suzuki Motor Corporation is believed to have agreed to LIC raising its stake beyond 10 per cent in the company.

“Replying to a letter, Suzuki has told the Indian government that it has no objection to LIC’s stake in Maruti going beyond 10 per cent,” a source said.

Suzuki was approached as LIC’s stake in the company had touched 8.1 per cent. The agreement with Suzuki during the earlier round of divestment had made it mandatory for the government to ensure that the share of no institution crosses 10 per cent in the stake sale.

As LIC was the most aggressive bidder when the government offloaded an 8 per cent stake in the company in January 2006, the government wanted it to bid in this round of divestment as well. During the previous sale, LIC had cornered 1.68 crore shares of the company, amounting to a 5 per cent stake. The government has already invited expressions of interest for the remaining 10.27 per cent stake in Maruti.