Mumbai, Dec. 27: Are the Bajaj brothers close to a negotiated settlement'
Market sources suggest that the two factions are on the verge of signing an agreement before the end of this fiscal, bringing a bitter family dispute to end.
Talk of a rapprochement between the two factions saw the Bajaj share scale the Rs 500 level, settling at Rs 507.70, a gain of Rs 16.65.
After exhausting all avenues, which included getting family friends like leading politician Sharad Pawar to mediate between the two brothersRahul and Shishirthe family asked Prakash Mehta of Malvi Ranchoddas & Co to represent Rahul, Shekhar and Niraj, while Shishir was represented by leading solicitors Federal & Rashmikant.
With professionals taking over the responsibility of arriving at an amicable settlement, a proper pricing of the Bajaj Auto shares held by Shishir Bajaj and valuation of the estate belonging to charitable trusts and Bajaj Bhavan, a skyscraper in Nariman Point, has been reached.
The solicitors had to grapple with ways to get Shishir take charge of Bajaj Hindustan and Bajaj Consumer Care, while the other faction puts a proper price for acquiring his Bajaj Auto stake.
An analyst tracking Bajaj Auto was, however, circumspect on whether a negotiated settlement was close at hand. We have heard this before, he cryptically remarked. He said the rise in the share price in the past few days has more to do with the performance of the two-wheeler major.
The company has taken impressive strides in the motorcycle sector and the market is discounting its slated launches in the 125cc and 100cc segment. The 125 cc World bike under the Kawasaki label is expected to further strengthen its position in the marketplace, he said.
The 100 CC Byk is also expected to create a new segment among the college going segment, he added.