Tata Motors Shares Slip After Reports Of $4.5 Billion Iveco Deal Float

Shares of Tata Motors slipped over 3% after reports of a deal with Italian truck maker Iveco.

Expected to be announced soon, according to an ET report, Tata Motors is reportedly close to acquiring Italian truck maker Iveco from the Agnelli family for $4.5 billion, potentially the group's second-largest acquisition.

The deal involves Tata buying Exor's stake and launching a tender offer for remaining shares, excluding Iveco's defense business. Iveco confirmed advanced talks, according to the report.

Tata Motors stock fell as much as 3.80% during the day to Rs 666.05 apiece on the NSE. It was trading 2.96% lower at Rs 671.85 apiece, compared to an 0.04% advance in the benchmark Nifty 50 as of 9:30 a.m.

It has declined 42.48% in the last 12 months and 9.73% on a year-to-date basis. The total traded volume so far in the day stood at 4.6 times its 30-day average. The relative strength index was at 49.8.

Seventeen out of the 35 analysts tracking the company have a 'buy' rating on the stock, 12 recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 741, implying an upside of 10%.