Is Mahindra out of Aston Martin race?
The $15.4-billion Mahindra Group appears to have pulled out of the race for troubled luxury car brand Aston Martin.
According to sources in investment banking circles, the brand's financial baggage is probably the reason why the Indian auto major has cooled off towards the bid.
The entire top brass of M&M, who were camping in London till last week, have now returned and subsequently flown off to Beijing for the company's annual Blue Chip conference.
M&M chairman Anand Mahindra has also been tweeting about the Beijing conference. Meanwhile, sources say the European private equity fund Investindustrial's top team are still in London as negotiations for Aston Martin continue.
Sources say that apart from Aston Martin's own financial baggage, the Mahindra team was also influenced by the fact that TID (The Investment Dar), the Kuwait based owner of half of Aston Martin Lagonda, is itself undergoing a court-endorsed rehabilitation process.
Last year, TID announced that it would kick off a plan to restructure 1.37 billion dinars ($5 billion) of debt on June 30, 2011. The company had also announced that Kuwait's Special Circuit Court of Appeal had approved its request to apply to the country's Financial Stability Law.