Following a report coming from an Italian newspaper that new investors have come up with a takeover bid, the shares of Italian tire maker Pirelli & C. SpA soared to a 12-year high in Milan trading.
The “Corriere della Sera” daily reported Pirelli might undergo a reorganization strategy that would introduce new stakeholders and then removed from stock exchange trading and the company’s stock highly benefited from the rumor – shares were up as much as 5.2 percent to 15.18 euros, the best intraday quotation for the tire maker since April 2002. The newspaper claimed that among the planned restructuring participants is also Pirelli Chairman Marco Tronchetti Provera, while upcoming new investors include Japan’s Yokohama Rubber Co. and China’s Zhongce Rubber Co. Currently, the Italian tire maker’s largest shareholder is Cam Finanziaria SpA, which in term is owned in a joint venture by an investment arm of OAO Rosneft, Russia’s largest oil producer, and a group led by Tronchetti Provera.
According to Luigi De Bellis, an analyst at Italian brokerage Equita SIM SpA, bringing in new investors could be a possible move for Milan-based Pirelli because the company has been searching for a partner to develop its truck-tire unit – even if this means it would be the fourth shareholder change made in the past six years.