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Aston Martin owners rev up for possible sale or stock IPO

LONDON — Aston Martin's owners have hired financial advisory firm Lazard to prepare for a stock market listing or sale of the British sports car maker made famous by fictional spy James Bond, sources familiar with the matter told Reuters. Italian private equity fund Investindustrial and a group of Kuwaiti investors, who together own more than 90 percent of the marque, are hoping to cash in on a recovery in sales and are in the initial stages of a strategic review. They have hired investment bank Lazard to work on a preliminary plan and could either opt for an initial public offering (IPO) in the third or fourth quarter of 2018 or a trade sale, two of the sources said on Friday. A deal could value the maker of the sports car driven by Britain's Prince William on his wedding day at between 2 billion and 3 billion pounds ($4 billion), one of the sources said, adding a listing was the most likely option. However, no final decision had been taken and the investors could decide to retain control, the sources added. Investindustrial declined to comment while Aston Martin and Lazard did not return requests for comment. Adeem Investment, one of the Kuwaiti investors, was not immediately available. If successful, a float of Aston Martin would be a milestone deal for the 104-year-old car manufacturer and would follow the IPO of Italian sportscar maker Ferrari which made its Wall Street debut in 2015 amid strong investor demand. Investindustrial, led by founder Andrea Bonomi, bought 37.5 percent of Aston Martin in 2012 in what was the fund's best-known investment in Britain. The fund, which has clinched a number of Southern European investments since its launch in 1990, is Aston Martin's single biggest investor and is driving the plans, the sources said. Beside Lazard, other investment banks have approached the private equity fund in recent weeks offering advice ahead of a possible IPO, another source said. Yet no other mandates will be awarded this year for the Gaydon-based firm, which is in the midst of a turnaround plan that aims to restore the business to profitability following six years of losses. Aston Martin, which recently unveiled its new Vantage model, is on course to post its first annual pre-tax profit since 2010 as strong demand for the luxury automaker's DB11 sports car boosts its performance.

Are supercars becoming less special?

There's little doubt that we are currently enjoying the golden age of automotive performance. Dozens of different models on sale today make over 500 horsepower, and seven boast output in excess of 700 hp. Not long ago, that kind of capability was exclusive to supercars – vehicles whose rarity, performance focus, and requisite expense made them aspirational objects of desire to us mortals. But more than that, supercars have historically offered a unique driving experience, one which was bespoke to a particular model and could not be replicated elsewhere. But in recent years, even the low-volume players have been forced to find the efficiencies and economies of scale that formerly hadn't been a concern for them, and in turn the concept of the supercar as a unique entity unto itself is fading fast. The blame doesn't fall on one particular manufacturer nor a specific production technique. Instead, it's a confluence of different factors that are chipping away at the distinction of these vehicles. It's not all bad news – Lamborghini's platform sharing with Audi for the Gallardo and the R8 yielded a raging bull that was more reliable and easier to live with on a day-to-day basis, and as a result it went on to become the best-selling Lambo in the company's history. But it also came at the cost of some of the Italian's exclusivity when eerily familiar sights and sounds suddenly became available wearing an Audi badge. Even low-volume players have been forced to find economies of scale. Much of this comes out of necessity, of course. Aston Martin's recent deal with Mercedes-AMG points toward German hardware going under the hood and into the cabin of the upcoming DB11, and it's safe to assume that this was not a decision made lightly by the Brits, as the brand has built a reputation for the bespoke craftsmanship of its vehicles. There's little doubt that the DB11 will be a fine automobile, but the move does jeopardize some of the characteristic "specialness" that Astons are known for. Yet the world is certainly better off with new Aston Martins spliced with DNA from Mercedes-AMG rather than no new Astons at all, and the costs of developing cutting-edge drivetrains and user interfaces is a burden that's becoming increasingly difficult for smaller manufacturers to bear. Even Ferrari is poised to make some dramatic changes in the way it designs cars.

The Aston Martin Vanquish Zagato Volante is a beautiful mouthful

Aston Martin makes some of the most beautiful sportscars in the world. There are few bad looking Astons and most attempts to modify or change the cars' characters usually ends terribly. Zagato, the Milan-based coachbuilder, is one of the few companies that seems to get it right. Last year, the company debuted its Aston Martin Vanquish Zagato coupe and Vanquish Zagato Volante convertible. These new spy shots show the production car in action. As the name suggests, the Vanquish Zagato Volante is simply a Aston Martin Vanquish Volante restyled by Zagato. That means a 5.9-liter V12 sending 592 horsepower to the rear wheels. Expect a 0-60 mph time of 3.7 seconds. That's nearly as quick as the new Aston Martin DB11. The Vanquish Zagato Volante keeps the standard car's long-hood short-deck proportions, but most of the bodywork has been redone. The grille keeps the standard Aston Martin outline, but it grows in size and bubbles out just slightly. Round LED lights sit at the corners of the Z-emblazoned grille. Around the side, we can see the gold-accented wheels and fender. There is a deep cut for airflow just behind the rear wheel. The shape mimics that of the standard car, but changes it just enough to make it special. A carbon-fiber lip runs around the bottom of the entire car. Out back, the wing-shaped taillights have been replaced with round units that use bladelike LEDs. The quad exhaust tips remain in place, but they appear to sit slightly higher than on the standard car. The small rear wing raises and lowers at speed for increased downforce. Just 99 of these Vanquish Zagato Volantes will be built. Most are likely spoken for, going to owners of the coupe version of the car. After all, if you have one, you might as well have the set. Related Video: Featured Gallery Aston Martin Vanquish Zagato Volante View 12 Photos Image Credit: CarPix Design/Style Spy Photos Aston Martin Convertible Luxury Performance aston martin vanquish aston martin vanquish volante aston martin vanquish zagato