India Hero Honda falls 5 pct on JV termination report

MUMBAI, Dec 15 (Reuters) - Shares in India's Hero Honda Motors fell 5 percent on Wednesday, after a TV channel reported the board of its Indian partner has approved the termination of the joint venture with Honda Motors. Hero Corporate will buy 26 percent of Honda'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 percent at 1,638.10 rupees at 0754 GMT in the main Mumbai market that was down 0.6 percent. The stock fell as much as 5.4 percent earlier after the report. (Reporting by Sumeet Chatterjee; Editing by Aradhana Aravindan) ((; +91-22-6636 9068; Reuters Messaging: Keywords: HONDA HERO/JV (If you have a query or comment on this story, send an email to COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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