Pirelli, Sinochem Mull Lowering of Stake in Tiremaker to 10% (2)

Pirelli & C. SpA is in talks with its largest shareholder, China’s Sinochem Group, over options that include reducing the Chinese conglomerate’s stake in the Italian tiremaker to about 10% to ease concerns over access to the US market, according to people familiar with the matter.

The proposal is among scenarios under review, the people said, asking not to be identified because the discussions are confidential. If implemented, it would reduce Sinochem’s holding from roughly 34% and reclassify the Chinese group as a passive investor, significantly curbing its influence.

Pirelli CEO Marco Tronchetti Provera at a Bloomberg event in Milan in November.

Source: Bloomberg

The Italian government, which considers Pirelli a strategic ...