And now the pendulum swings back again. After reports that the creditors of Italian design studio and coachbuilder Pininfarina had rejected an offer from India's Mahindra, reports are now coming in that a deal between the two companies is nigh. Automotive News reports that negotiations between the two sides could be completed in a matter of days. There are still significant details to be hammered out, though, including the final purchase price. The news sent the Italian design house's stock soaring, according to an Italian newspaper.
Mahindra's original offered called for Pininfarina's creditors to write off up to half of the company's $97 million in debt, although that deal was vetoed by three of the banks holding the debt. Despite the kibosh by the banks, the family behind the famous designers said earlier this year that a new investor would provide "financial solidity and bolster growth in coming years."
Snapping up Pininfarina would be a coup for Mahindra, which hopes to use the famous designers to spice up the bodies of its various vehicles, which according to AN, includes South Korean budget brand Ssangyong. Stay tuned for more on this one, as we expect additional details to break in the coming days.
Mahindra's original offered called for Pininfarina's creditors to write off up to half of the company's $97 million in debt, although that deal was vetoed by three of the banks holding the debt. Despite the kibosh by the banks, the family behind the famous designers said earlier this year that a new investor would provide "financial solidity and bolster growth in coming years."
Snapping up Pininfarina would be a coup for Mahindra, which hopes to use the famous designers to spice up the bodies of its various vehicles, which according to AN, includes South Korean budget brand Ssangyong. Stay tuned for more on this one, as we expect additional details to break in the coming days.
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