(Adds details, shares)
MILAN, April 22 (Reuters) - Italian car designer Pininfarina may have news soon about a possible tie-up, its chairman said on Wednesday, after sources said Indian car maker Mahindra & Mahindra aimed to submit a formal bid for the Italian brand by April 29.
"We don't rule out that there will be news soon, but we are not confirming it," Chairman Paolo Pininfarina told reporters 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 April 29, two sources with knowledge of the matter told Reuters on Monday.
Shares in Pininfarina were suspended from trading on Wednesday after rising 11.4 percent, with a trader saying the market was betting on the deal with Mahindra. M&A speculation has pushed the stock up nearly 50 percent over the past month.
On March 26, debt-laden Pininfarina said Mahindra & Mahindra had expressed an interest in buying it, confirming media reports.
The two sources said the Indian company's offer was expected to have the backing of Pininfarina's controlling shareholder Pincar -- which has a 76 percent stake in the group famous for designing Ferraris and other luxury cars.
The offer would still need to win the blessing of Pininfarina's creditor banks, they said. (Reporting by Agnieszka Flak; Editing by Alison Williams)