Aston Martin says it is looking for capital, not buyer
29 November 2012
British sports car maker Aston Martin today said it is in "advanced" talks with potential investors for much-needed capital even as the workers union, Unite, last week met with the management of Aston Martin suggesting that a manufacturer owner is better for the company.
Unite, however, includes workers from both Aston Martin and Jaguar Land Rover (JLR), the luxury carmaker owned by the Tata group.
Italian private equity fund Investindustrial and India's Mahindra and Mahindra have been in the race and Kuwaiti investment house Investment Dar, which owns Aston Martin, seems to be looking for a higher offer.
Investindustrial offered just under 250 million pounds ($400 million) while Mahindra trumped the offer with a higher bid, sources said.
While the Mahindra bid is higher, Investindustrial has offered to use technology and car parts from AMG, the Mercedes-Benz unit that makes sports cars, sources said.
Mahindra is reported to have bid for nearly 50 per cent of Aston Martin, with initial offer for 40 per cent stake that could rise to 50 per cent.