Pirelli postpones board nominations amid ownership probe

Milan, Italy – Pirelli & C. SpA has deferred the nomination of its board of directors as the shareholding structure of the tire maker is investigated by the Italian government.

A list of board candidates was due to be issued on 4 June and then to be voted on at the group's 29 June shareholders meeting, said a Pirelli announcement.

However, the process has been delayed by the Rome government’s continuing probe into the level of Chinese ownership of Pirelli, added the 6 June statement.

The tire group will, therefore, seek to postpone the board nominations to a subsequent shareholders meeting, to be held ‘presumably by 31 July’.

Italy's government triggered the ‘golden power’ procedure in April after a Sinochem notification of plans to renew Pirelli's year-old shareholder agreement.

The government has power to impose conditions or veto transactions, investments or corporate resolutions that could threaten Italian public interests.

Chinese group Sinochem currently holds a 37% stake in Pirelli, through its investment vehicle Marco Polo International.

Other major investors include Silk Road Fund (9%), Camfin (14.10%, LongMarch (3.68%) and Brembo (6%).

The remaining shares are mainly owned by institutional investors and as well as retail investors, among others.