Pirelli holding deal with funds seen in coming days - sources

MILAN Mon Nov 19, 2012 7:47am EST

MILAN Nov 19 (Reuters) - Two Italian private equity funds expect to conclude talks to invest in a holding company that indirectly controls Pirelli, people familiar with the situation said on Monday.

The funds, Investindustrial and Clessidra, would invest 40-60 million euros in Tronchetti Provera's family holding MTP Sapa.

The financing would enable Pirelli Chairman Marco Tronchetti Provera to pay back debt, thereby keeping control of Pirelli, the world's fifth-largest tyremaker with a market capitalization of 3.96 billion euros.

Pirelli chairman Marco Tronchetti Provera controls the tyremaker through a complex structure involving three interlocking holding companies - MTP Sapa, GPI, and the Milan-listed Camfin.

The accord calls for the creation of a new holding in which MTP Sapa has 70 percent and the funds have the remaining 30 percent stake.

(Reporting by Stefano Rebaudo, editing Jennifer Clark)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.