Aston Martin draws suitors after profit warning

Aston Martin Lagonda Global Holdings, the British maker of fast cars, is reportedly holding more talks with potential investors as it comes under growing financial pressure.
China’s Contemporary Amperex Technology Co. is mulling a stake in the ailing company, Sky News said on Saturday without disclosing the source of the information. The Financial Times also reported talks have been held with Zhejiang Geely Holding Group Co., citing unidentified sources.
Canadian billionaire Lawrence Stroll is also close to injecting a further 200 million pounds ($261 million) into the company, which would give him 19.9 percent control, the FT added.
Geely is conducting due diligence as it considers taking a stake in the 107-year-old U.K. firm, the FT said, citing four people familiar with the discussions.
The talks come almost a month after Aston Martin confirmed it was in early-stage talks with potential investors as it launched a review of funding.
Earlier this week, Aston Martin warned its 2019 profits would fall almost by half due to weak European markets.
Geely sees potential synergies on technologies and vehicle platforms between Aston Martin and its own Lotus brand, the source familiar with the discussions told Reuters.
A spokesman for Aston declined to comment on whether the company is in talks with Geely, and reiterated a statement from Tuesday.
“We also remain in discussions with potential strategic investors, which may or may not involve an equity investment into the company,” he said.
A spokesman for Geely Europe declined to comment.
Daimler, which owns a 5 percent stake in Aston Martin and supplies it with Mercedes-AMG engines, supports efforts by the British carmaker to secure a long-term future, the source said.
Daimler declined to comment.
Geely’s chairman, Li Shufu, owns a 9.69 percent stake in Mercedes-Benz parent Daimler. Geely and Daimler run the Smart city car brand as a joint venture out of China.
Source: autonewscom