BENGALURU, India -- India's Eicher Motors, maker of Royal Enfield classic motorbikes, is set to make a binding takeover bid for Volkswagen Group's Ducati motor cycle brand for $1.8 billion to $2 billion, the Economic Times daily reported.
Eicher is believed to be the only Asian company left in the auction and is currently finalizing terms with advisers ahead of the scheduled bid deadline of end September, the newspaper said, quoting unnamed sources.
VW Group is considering options for Ducati, including a sale of the brand, wholly controlled by VW's Audi division
Eicher is currently finalizing and structuring terms with global banks and consulting companies, the paper said on Thursday, quoting unnamed sources.
In July, it was reported that five bidders had been short-listed for Ducati, including Italy's Benetton family and U.S. motorcycle maker Harley-Davidson, with offers ranging from 1.3 billion to 1.5 billion euros ($1.5 billion to $1.8 billion).
Sources told Reuters earlier this week that VW had put the sale on hold after resistance from German trade unions and internal rifts on strategy. The sources said VW had told five bidders to hold off making binding bids for the brand, which it put up for sale in April to help fund a strategic overhaul.
A potential deal currently does not have the support of a majority on VW's supervisory board. Labor leaders, who occupy half the board seats, are resisting a sale unless there are compelling financial reasons.
