Italian private equity fund Investindustrial and Indian car maker Mahindra have made competing bids for 50 percent of British luxury car maker Aston Martin with a deal expected over the weekend, a source close to the matter said on Friday.
Investindustrial reached a agreement with Kuwaiti investment house Investment Dar, which owns Aston Martin, on Thursday but afterwards Mahindra made a higher counter bid, the source said. "They are in talks. A deal is expected to be finalised over the weekend," the source said.
A spokesman for Investment Dar was not immediately available for comment, nor could Mahindra be reached for comment.
The source said Investindustrial had made a bid worth between 200 million and 250 million pounds (USD 400 million) for the stake and was confident in winning the race because its proposal was "technically" superior.
It said Investindustrial had agreed a technical partnership deal with Daimler AG's Mercedes.
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 Audi division.
M&M stock price
On November 27, 2015, Mahindra and Mahindra closed at Rs 1348.20, up Rs 3.10, or 0.23 percent. The 52-week high of the share was Rs 1441.45 and the 52-week low was Rs 1095.00.
The company's trailing 12-month (TTM) EPS was at Rs 52.62 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 25.62. The latest book value of the company is Rs 310.09 per share. At current value, the price-to-book value of the company is 4.35.
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