India: Mahindra aims to buy Pininfarina

MAHINDRA & Mahindra, India’s largest maker of sport utility vehicles, is in talks to buy Italian auto design and engineering company Pininfarina, according to people familiar with the matter. Mahindra was closing in on the purchase of the company that designed the Ferrari Testarossa after weeks of talks, said the people, who asked not to be identified because the discussions are private. They said negotiations were continuing and could still fall apart. Pininfarina’s shares have risen 28 percent this year, valuing the company at e121 million (R1.6 billion). Pininfarina was founded in 1930 and has designed automotive classics like the Ferrari 250 GT and Alfa Romeo Giulietta Spider from the 1950s. The Turin-based company has posted losses in 10 of the past 11 years as it struggled with debt and a floundering business to manufacture cars for other companies. It would be the latest in a series of Italian companies to fall into foreign hands as the country struggles to emerge from a cycle of recessions. A spokesman for Pininfarina said Mahindra was a client and the two companies had a very good relationship. He declined to comment on takeover talks. A representative for Mahindra said the company did not comment on speculation. – Bloomberg