Pininfarina could have news soon about a potential tie-up, its chairman said on 22 April, following news that India's Mahindra & Mahindra aimed to table a formal offer for the Italian design house by 29 April.
Meanwhile, Pininfarina's stock were suspended from trading on 22 April after rising 11.4% in Milan, with the market betting on the deal with Mahindra (M&M).
Pininfarina now has a market capitalisation of €181m (£129m, $194). M&A speculation has pushed the stock up some 45% over the past month.
"We don't rule out that there will be news soon, but we are not confirming it," Chairman Paolo Pininfarina told reporters on 22 April, on the sidelines of an event in Milan.
Mahindra & Mahindra is working to present a formal offer for Pininfarina in time for a shareholder meeting on 29 April, Reuters reported on 20 April.
M&M's offer is expected to have the backing of Pininfarina's controlling shareholder Pincar, which owns 76% of the group famous for designing Ferraris and other luxury cars.
But the offer will still needs to win the blessings of Pininfarina's creditor banks, the news agency added.
In March, debt-laden Pininfarina said M&M had expressed an interest in acquiring it.