Pirelli IPO Could Raise a Billion Euros
The floatation of Pirelli & C. SpA’s tyre unit could raise as much as 1 billion euros two inside sources told Bloomberg. According to the report Pirelli is seeking to take advantage of increasing profit at Pirelli Tyre SpA and plans to sell as much as 40 per cent of the division in the IPO. The shares are scheduled to go on sale during the week beginning 12 June said the sources.
Pirelli Tyre is returning to the stock market nine years after being bought out by its parent company. The sale would value the tyre company at about 2.5 billion euros.
Pirelli’s return to the stock market is also widely understood to be a way of increasing its investment in Telecom Italia, Italy’s largest phone company. Pirelli, the Benetton family and Italy’s two largest banks control Telecom Italia through Olimpia SpA, a holding company that isn’t listed. Olimpia owns 18 per cent of Telecom Italia, making it the company’s top shareholder. Pirelli and the Benettons are set to buy out the stakes owned by the banks for a total of 1.1 billion euros, according to Bloomberg.
Sales at Pirelli Tyre in the first-quarter rose 16 per cent to 1 billion euros and net income advanced 15 per cent to 61.5 million euros.
Comments