Hero Honda sheds 5 pct on JV exit

Shares in Hero Honda Motors fell 5 per cent on Wednesday,on media reports the board of its partner has approved the termination of the joint venture with Honda Motors.

Hero Corporate will buy 26 per cent of Honda8217;s stake in the joint venture for 1 billion to 1.2 billion,CNBC TV18 reported,citing sources. The board of Hero Corporate expressed concerns on higher royalty payment after the breakup,it said. Shares in Hero Honda was trading down 4.4 per cent at Rs 1,638.10 at 0754 GMT in the main Mumbai market that was down 0.6 per cent. The stock fell as much as 5.4 per cent earlier after the report.