Mahindra & Mahindra in talks to acquire Italian auto-design firm Pininfarina SpA

Mahindra & Mahindra Ltd, India's largest maker of sport-utility vehicles, is in the final stages of negotiations to buy Italian auto-design firm Pininfarina SpA, according to people familiar with the matter.

Mahindra may reach an agreement to purchase the company that has designed some of the most iconic Ferrari sports cars as early as next week, said the people, who asked not to be identified because discussions are private. Representatives for Mahindra and Pininfarina declined to comment.

While other potential bidders have expressed interest in buying the Turinbased creator of the Ferrari California T roadster, Mahindra is favoured by the Pininfarina family and its creditor banks because it is seen as providing stability through its position in the auto industry, the people said.

Negotiations are continuing and could still fall apart, the people said. The Italian company was founded in 1930 and has designed automotive classics such as the Ferrari 250 GT and Alfa Romeo Giulietta Spider from the 1950s.

Pininfarina has been unprofitable for 10 of the past 11 years while struggling with debt and a floundering division that built cars for other manufacturers, a business it shut three years ago. It would be the latest Italian company to be purchased by a foreign buyer as the country struggles to emerge from a cycle of recessions.

Mahindra India