Pininfarina, Mahindra to Resume Sales Talks in September

Talks involving a bid by India's Mahindra & Mahindra Ltd. to buy Italian design firm Pininfarina SpA stalled this month and will resume in September, sources tell Reuters.

A report in June by Italy's Il Messaggero said Pininfarina's creditors balked at Mahindra's initial offer, which included a plan to write off half of Pininfarina's €87 million in debt. Reuters' sources say the negotiators had hoped to strike a deal by the end of July.

In the meantime, Pininfarina's financial situation continues to deteriorate. Operating losses for the iconic designer of the Ferrari Dino and Testarossa supercars more than doubled in the first quarter, and the company expects its debt to grow by year-end, Reuters says.