Confirming earlier reports that Mahindra was interested in Pininfarina, India’s largest automaker of SUVs will place its bid on April 29 and is expected to have the support of Pincar, Pininfarina’s controlling shareholder. Pincar has a 76-percent stake in Pininfarina, which is well known for its design on numerous Ferrari models and other luxury cars. Even with Pincar’s backing, Mahindra’s bid isn’t a guarantee since it’ll still need approval from Pininfarina’s creditor banks.
Currently Pininfarina has a market value of $174 million and saw its stock rise nearly 40 percent since Mahindra expressed interest in acquiring the company. At the end of last year, Pininfarina’s debt stood at 45-million euros ($48 million) and is expected to rise this year.
[Source: Automotive News]
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