U.K. Firm Elbows Mahindra Out of Aston Martin Deal

London-based U.K.'s Investindustrial is close to 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Mahindra has withdrawn from the bidding, according to The Times of India, which also cites unidentified sources.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 bid 250 million ($403 million) for a 50% voting stake (40% equity ownership) in Aston Martin, according to news reports last week. They claimed Investindustrial's offer was lower.

But Bloomberg says Aston Martin prefers the equity fund as buyer because it promises to give the company access to technology and components from AMG, the performance unit of Daimler AG's Mercedes-Benz Cars unit.