Michelin and Pirelli Tie-up Speculation

Various media sources are reporting speculation about Michelin’s intentions towards Pirelli Tyre. The rumours come after Italy’s Finanza & Mercati reported that banker Gerardo Braggiotti was studying the possibility of such a tie-up between the two companies. However, French tyre group Michelin had no comment to make about the Italian newspaper reports, according to Reuters. A source close to the bank involved reportedly told Reuters the story was “completely without foundation.”

“Nobody is aware of such a move and we have no comment,” a spokeswoman for Michelin, based in Clermont-Ferrand added. Michelin’s sole managing partner, Michel Rollier, is on holiday.

Banker Gerardo Braggiotti, who Reuters reports worked at Mediobanca, has his own investment banking boutique, Banca Leonardo. In July Pirelli sold a 38.9 per cent stake in its tyre unit to a group of banks, including Mediobanca and Banca Leonardo, after it pulled the plug on a planned IPO.