Gold-Mine For Pirelli

Pirelli sold a 90% share (Cisco holds 10%) in the very young company Optical Technologies. OT has around 100 employees and a first half-year turnover of US$ 12 m. Turnover for the whole year is expected to be US$ 30 m.

Optimistic observers speculated that the price would be around US$ 1 bn, while Pirelli in fact received slightly over US$ 3 bn (after tax) in cash. According to the management, acquisitions in the tyre field are unlikely, but it may be that Pirelli can bring forward the introduction of its MIRS system faster than expected. Pirelli is, and will remain, in partnership with Michelin and Goodyear to promote the PAX system.