Mahindra's offer for Pininfarina rejected by creditors: Report

An offer by Mahindra & Mahindra to take over Pininfarina has fallen through due to opposition from some of the Italian car designer's creditor banks, newspaper II Messaggero said on Saturday.

Expectations of a sale have recently fuelled gains in the shares of the loss-making Pininfarina group, famous for designing Ferraris and other luxury cars.

"But three or four banks have rejected Mahindra's offer because it envisaged writing off half of Pininfarina's debts of 87 million euros ($97 million)", the newspaper said.

Pininfarina declined to comment. Also, it was not immediately possible to contact Mahindra.

(Reuters)