Tronchetti Nears Pirelli Shareholder-Reorganization Deal

Pirelli & C SpA (PC) Chairman Marco Tronchetti Provera is close to reaching an agreement with partners on the reorganization of the chain of control of Europe’s third-largest tiremaker.

Tronchetti with Intesa Sanpaolo SpA (ISP), Unicredit SpA (UCG) and Clessidra SGR are finalizing a “transaction” on holding company Cam Finanziaria SpA (CMF) “to restructure its ownership structure,” they said today in an e-mailed statement.

The chairman controls Milan-based Pirelli through the holding company, known as Camfin, supported by an agreement with other investors including Mediobanca SpA (MB), Italy’s biggest publicly traded investment bank, according to national stock-market regulator Consob. As of May 31, Tronchetti’s ownership of Pirelli totaled almost 26.2 percent of the stock via his control of Camfin and other investment vehicles, according to data published by Consob.

Tronchetti said today the reorganization of Camfin was pushed also by the possible end of his partnership with Malacalza Investimenti. Malacalza owns 12 percent of Camfin and a 31 percent stake in a holding which controls Camfin. Tronchetti and partners may bid for the rest of Camfin they don’t own as a way out for Malacalza, Ansa reported June 2.

Pirelli is pushing sales of its high-end products to make up for a drop in Europe’s mass-market car sales to a two-decade low. First-quarter earnings before interest and taxes fell 16 percent to 179.8 million euros ($234 million) as revenue declined 1.3 percent because of currency effects.

The tiremaker plans to focus on premium brands in Europe, in addition to expanding into markets outside the home region, Tronchetti said in an interview at the Geneva car show in March.

Pirelli stock fell as much as 2.6 percent in Milan trading and was down 0.8 percent to 8.87 euros at 10:27 a.m., valuing the manufacturer at 4.3 billion euros. Camfin was up 2.2 percent at 87.4 euro cents in Milan trading.

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net

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