Mahindra's offer for Pininfarina rejected by creditors-paper

  • Reuters
  • Stock Market News
Mahindra's offer for Pininfarina rejected by creditors-paper
Credit: © Reuters.

MILAN, June 27 (Reuters) - An offer by Indian vehicle maker Mahindra & Mahindra (NSE: MAHM ) MAHN.NS to take over Pininfarina PNNI.MI has fallen through due to opposition from some of the Italian car designer's creditor banks, newspaper Il Messaggero said on Saturday.

Expectations of a sale have recently fuelled gains in the shares of the loss-making Pininfarina group, famous for designing Ferraris and other luxury cars. ID:nL5N0XJ2D6

But three or four banks have rejected Mahindra's offer because it envisaged writing off half of Pininfarina's debts of 87 million euros ($97 million), the newspaper said.

Pininfarina declined to comment. It was not immediately possible to contact Mahindra.

Pininfarina will now seek to agree a new debt restructuring, Il Messaggero said. ($1 = 0.8957 euros)

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