KKR, TPG, Carlyle, Bain in race to buy Honda's stake in India JV

KKR & Co, TPG Capital, Carlyle Group and Bain Capital are competing to acquire a part of Honda Motor's stake in Indian motorcycle venture Hero Honda Motors, according to five people with direct knowledge of the situation.

Two of the funds may jointly buy about 15%, valued at $1.1 billion, in Hero Honda, three of the people said, declining to be named before an official announcement. Another 5% may be sold to the Hero Group's Munjal family, which holds a 26.2% stake in the New Delhi-based company, two of the people said.

Japan's second-biggest carmaker and the Hero Group have been in talks on Tokyo-based Honda Motor's plans to reduce its 26% stake in the venture, maker of half the motorcycles sold in India, for over a year, said three of the people. The two partners are also in talks for an agreement providing technology from Honda for the motorcycle maker that extends beyond 2014, when the current accord expires, two of the people said. A new agreement would make it more likely for the buyout firms to purchase the stake, one of the people said.