Pirelli & C. SpA has confirmed that, on March 11, it reached an agreement to acquire the entire share capital of Speed SpA. Speed, a company held by the financial institutions Intesa Sanpaolo, Banca Leonardo Group, UniCredit, One Equity Partners, JP Morgan Group, Lehman Brothers and Mediobanca, has since August 2006 held a 38.9 per cent stake in Pirelli Tyre SpA, which it acquired for 740 million euros. The share was bought back for a cash payment of 434.4 million euros, a sum financed by available liquidity. The purchase price takes into account Speed’s debt of approximately 401.1 million euros. The transaction thus attributes the Pirelli Tyre shareholding, Speed’s sole asset, an equity value of 835.5 million euros.

The Italian company says that the repurchase of the share in its tyre division, approved on March 11 by the Pirelli & C. SpA Board of Directors, is part of the Pirelli Group’s strategy to refocus on its core businesses, as announced following the sale of Olimpia. The passage of the Speed shares takes place on March 12, the same time as the closing, with the exception of a 19.19 per cent stake, whose transfer to Pirelli is expected to occur in July 2008.