Aston Martin May Be Poised to Sell Stake

The U.K.'s Investindustrial is near a deal to acquire a large stake in British luxury sports car maker Aston Martin Lagonda Ltd., Bloomberg News reports.

The news service cites anonymous sources who say the private equity firm has trumped an offer from Indian SUV maker Mahindra & Mahindra Ltd.

Mahindra has withdrawn from the bidding, according to The Times of India, which also cites unidentified sources. The reason, it says, is that Kuwait's Investment Dar, which owns 64% of Aston Martin, refuses to cede majority control.

Mahindra made a higher bid for a 50% voting stake (40% equity ownership) in the brand than did Investindustrial, according to news reports last week.

But Bloomberg says Aston Martin prefers the equity fund as buyer because Investindustrial promises to use technology and components from AMG the performance unit of Daimler AG's Mercedes-Benz Cars unit in the British brand's future models.

Investindustrial also has some experience with producing high-end vehicles, the news service notes. The company owned motorcycle maker Ducati Motor Holding SpA for more than six years before selling it to Volkswagen AG's Audi unit in July for €860 million.