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Pirelli RE capital increase 99.4 pct subscribed

Tue Jul 7, 2009 12:17pm EDT

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MILAN, July 7 (Reuters) - Italy's Pirelli & C Real Estate SpA's (PCRE.MI) capital increase, which closed on Friday, was 99.4 percent subscribed, raising 397 million euros in fresh funds, the company said on Tuesday.

Tyre group Pirelli & C SpA (PECI.MI), Pirelli RE's 58 percent shareholder, took up all its rights in the deeply discounted 135-for-7 rights issue priced at 0.50 euros per share, it said in a statement.

"Pirelli & C has subscribed to part of its share by converting into capital part of its financial credit to Pirelli RE," it said without giving further details.

The remaining rights will be offered on the bourse from July 13, it said.

The funds raised will be used to cut Pirelli RE debt and to give it the necessary flexibility to carry out its business plan, it said.

Pirelli RE shares closed up 2.47 percent at 0.581 euros. (Writing by Nigel Tutt, editing by Will Waterman)



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