New Delhi, Dec. 2: The Bajaj brothers, disputing a split in family assets, are exploring the possibility of an out-of-court settlement as directed by the Company Law Board (CLB) last month.

However, sources in the Rahul Bajaj camp are unsure of such a possibility.

“Yes, we are talking to each other, but are not very optimistic considering our bitter experiences with the Shishir Bajaj party in the past four years,” sources close to Rahul Bajaj said.

If the two parties fail to reach an out-of-court settlement, the matter will go back to the CLB which will resume hearing on January 14.

Three previous attempts at an amicable division of the family-owned business assets between the brothers have failed.

The aim is to untangle the shareholdings of the brothers in Bajaj Auto, Bajaj Hindusthan and other group companies.

KTM stake

Bajaj Auto Ltd is planning to consolidate its stake in KTM, an Austrian motorcycle company.

“We may consider increasing our stake in KTM ... If they (promoters) are ready to sell more, we will buy more. And if this happens, it will give Bajaj Auto an access to regulated markets of Europe where the company is yet to venture into,” said Bajaj Auto chairman Rahul Bajaj on the sidelines of the India Economic Summit.

Bajaj Auto had recently picked up a 14.5 per cent stake in KTM for about Rs 300-350 crore from the open market as part of a “wide-ranging cooperation” arrangement. The company picked up the stake through its wholly owned Dutch subsidiary.

Bajaj said the company was also on the look out for potential buyout targets and was in talks with various firms for possible takeovers. He, however, refused to divulge any details.

The alliance with KTM covers the joint development of street bikes for Indian and overseas markets. The companies will develop a high-performance, water-cooled engine platform for 125- and 250-cc bikes.The two will focus on their core markets for the street bikes — Bajaj on India, South Asia and Southeast Asia and KTM on Europe.

The KTM group recorded revenues of 566.1 million euros in 2006-07.

KTM Power Sports AG is the second largest European sports motorbike manufacturer.