Mahindra's bid to take over Pininfarina rejected

Earlier this year, we had reported that Mahindra was considering a takeover of loss-making Italian design firm, Pininfarina. However, the deal has not gone through due to opposition from some of Pininfarina's creditor banks.

According to Il Messaggero, an Italian newspaper, three or four banks are believed to have rejected Mahindra's offer because the Indian manufacturer was planning to write off half of Pininfarina's debts of 87 million euros ($97 million). The Turin-based company is now likely to look at a new debt restructuring.

The prices of the shares of Pininfarina had increased recently as the company was expected to be taken over by Mahindra.

Pininfarina, which has been operating since 1930, has designed cars Ferrari, Rolls-Royce, Alfa Romeo, Cadillac and Maserati and many more automobile manufacturers. However, since three years, it has discontinued mass production for any manufacturer. At present it designs residential apartment towers, vending machines and toothbrushes and other products apart from cars. The company has also played a part in designing the Mahindra Halo electric car that was displayed at the 2014 Auto Expo .

Source: Reuters