Amazon bids for 60% stake in India's Flipkart

Amazon halts its construction in Seattle

Amazon halts its construction in Seattle

The buyback also appears to be the first somewhat public confirmation from Flipkart of its current sale talks with Walmart, which will buy at least 55% of Flipkart in a deal that will value the company at $20-21 billion. The front-runner for the acquisition, Walmart has concluded a deal to purchase a 73 percent stake in the Indian e-commerce company, with the total valuation of Flipkart touching between $20-22 billion, as reported by FactorDaily.

Besides the grouse of being left out of the loop on such a crucial transaction, the sellers also fear that Walmart may look at bringing in its own private labels via Flipkart to the Indian consumers, adding to competitive pressures.

Walmart informed Flipkart it plans to sell shares in an initial public offer (IPO) in three years time.

Walmart is gearing up to buy Flipkart in a $14.6-$16 billion deal, according to a recent report. While Kalyan Krishnamurthy will continue as Flipkart's CEO, the company's founder, Sachin Bansal will probably be stepping down. Meanwhile, the e-tailer completed another round of buybacks of its shares valued at $350 million (Rs 2,275 crore) from its investors, according to its regulatory filing on Thursday.

CEO Krishnamurthy is expected to continue in his role, but numerous reports have been pointing to the exit of one of the two founders, Sachin Bansal, who is now the executive chairman of the company.

Emails sent to Flipkart and Walmart did not elicit any response.

When contacted, a Flipkart spokesperson said, "There have been speculations for the last six months of Flipkart being in and out of negotiations with several parties".

Alphabet Inc. may be contributing $3 billion to the investment.

The sources added that Sachin Bansal, founder of Flipkart, was in the USA last week to oversee final lap negotiations with Walmart.

For Walmart, the deal with Flipkart may well be its only opportunity to get a foot in the door in India, while Amazon has been investing billions of dollars to gain a greater foothold in the country's e-commerce market and is, understandably, unwilling to accept further competition from Walmart in the region.

Amazon's offer could kickstart a new battle between it and Walmart, already fierce retail rivals in the United States.

Walmart is now seeking a bigger stake than previously expected.

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