Aston Martin seen in deal with Investindustrial - sources

MILAN Fri Dec 7, 2012 1:27am IST

An Aston Martin V12 Zagato is displayed inside a dealership in central Beijing November 29, 2011. REUTERS/Soo Hoo Zheyang

An Aston Martin V12 Zagato is displayed inside a dealership in central Beijing November 29, 2011.

Credit: Reuters/Soo Hoo Zheyang

Stocks

   

MILAN (Reuters) - Italian private equity fund Investindustrial is likely to announce it will invest in British sportscar maker Aston Martin on Friday, two people familiar with the matter said on Thursday.

"It's probable that there will be an announcement," one of the two people said, declining to elaborate on what the deal would entail. "It's not 100 percent certain, but it's probable."

Indian tractor maker Mahindra and Mahindra (MAHM.NS) had been in talks to inject cash into the iconic sportscar brand from Aston's owner, Kuwaiti investment house Investment Dar, sources said. It was not clear whether it had pulled out of the race.

Investindustrial had earlier bid between 200 million and 250 million pounds for a 50 percent stake and agreed on a technical partnership deal for Aston Martin with Daimler' AG's Mercedes (DAIGn.DE), another person told Reuters on November 23.

Investindustrial, owned by Italy's Bonomi family, is not new to luxury motor brands. In 2006, it bought Italian motorcycle maker Ducati and sold it for about 860 million euros last April to Volkswagen's (VOWG_p.DE) Audi division.

The Indian group had hoped to strike a deal to buy up to half of Aston Martin by the end of November, sources said at the time, adding that the deal would likely be for an initial 40-percent stake that could rise to 50 percent for a total price of around $400 million.

Investment Dar has consistently denied it is in talks to sell all of part of its stake in Aston Martin. A spokesman for Investment Dar was not immediately available for comment, nor could Mahindra be reached for comment.

(Reporting by Jennifer Clark and Rhys Jones; editing by Andrew Hay)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage