TOKYO (AFX) - General Motors has finalized plans to sell its entire 20 pct stake in Suzuki Motor to end a capital tie-up which dates back to 1981, the Nihon Keizai Shimbun reported, without citing sources.
GM, which is the largest shareholder of Suzuki, has told the Japanese carmaker about its decision to end the tie-up, the business daily said.
Suzuki is also in talks with GM about selling its interest of about 11 pct in South Korea's GM Daewoo Auto and Technology Co to the US firm, the report said.
GM's stake in Suzuki is worth about 270 bln yen if calculated based on the market value of the Japanese firm's outstanding shares, which stood at 1.34 trln yen on Friday.
GM appears to have requested Suzuki to buy back the shares, the report said.
Officials of Suzuki and General Motors Japan here were not immediately available for comments on the report.
In October 2004, GM sold all of its shares in Japan's Fuji Heavy Industries Ltd, renowned for its Subaru brand cars.
Under pressure from its shareholders to sell assets, GM may also sell its 7.9 pct stake in Isuzu Motors Ltd, another major Japanese automaker, the report said, citing unnamed industry observers.
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© 2006 AFX News
