November 19, 2012 / 12:50 PM / 5 years ago

Pirelli holding deal with funds seen in coming days - sources

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

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