Sources told CNBC-TV18 that Berkshire Hathaway may look to invest around $4-6 billion in the bank
Private sector lender Kotak Mahindra Bank has informed the exchanges that it is unaware of any plans by Warren Buffett-owned Berkshire Hathaway to buy a stake in it.
According to a report by CNBC-TV18, Berkshire Hathaway is reportedly in talks to buy a stake in the private sector lender, which is the country's third largest by market capitalisation.
The stock, which rose nearly 8 percent on the report, shed its gains after the lender released its clarification to the bourses.
Sources told the news channel that Berkshire Hathaway wants to buy at least 10 percent in Kotak Mahindra Bank and is looking to invest $4-6 billion, but that it has not decided to go through with the investment as yet.
Uday Kotak owns a 29.73 percent stake in Kotak Mahindra Bank. The total shareholding of the promoter group in the bank stands at 30.02 percent.
In accordance with the Reserve Bank of India's norms, Kotak is required to bring down his shareholding in the bank to 20 percent or below before December 31.
Kotak Mahindra Bank's market capitalisation currently stands at around Rs 2.4 lakh crore ($34 billion), based on which a 10 percent stake would cost around Rs 24,000 crore ($3.4 billion). ($1 = Rs 70.49)
CNBC-TV18 reported that it was still awaiting a response from Berkshire Hathaway and that Kotak Mahindra Bank had not issued any statement or comment on the subject.At 10:40 IST, the stock was trading at Rs 1,259.30, up 6.58 percent on BSE.