Pirelli’s Chinese Investor Shuns Blind Trust Option for Stake

Pirelli & C. SpA’s Chinese investor has rejected a possible plan to place its stake into a blind trust, according to people familiar with the matter, blocking one path to potentially resolving a governance impasse that risks impacting the tiremaker’s US business.

The option of placing the Sinochem Group’s stake in Pirelli into a blind trust isn’t under discussion, said the people, who asked not to be named because the matter is private. The Chinese state-backed group has no appetite for pursuing this route, they said.

Local press in Italyreportedon Thursday that the blind-trust mechanism is ...