Mumbai, March 13: German car major Volkswagen AGl's premium car unit Audi is in talks with Italian motorcycle major Ducati to acquire the stake, Financial Times reported  citing sources close to the development.

The FT reported that the deal could be valued at around $1.1 billion, including the debt amounting around 90% of the total value.

If the deal goes through the Italian company will get almost three-times of the amount invested.

It could be a shocker for India's largest bike maker Hero MotoCorp as it expressed deep desire to acquire Ducati to expand its product basket.

According to earlier media report another Indian auto major Mahindra & Mahindra was also in fray along with BMW AG.

Private Equity firm Investindustrial Holdings SpA is looking to sell Ducati and in talks with several other players to get the valuation of around $1.32 billion.