Italian private equity firms Investindustrial and Clessidra have confirmed they are in exclusive talks over a possible financial and business partnership with the holding company that owns Pirelli, the world’s fifth-largest tyremaker.
The companies confirmed discussions in a joint statement on Tuesday, adding that an agreement had yet to be reached and that talks would continue until 15 December.
Earlier reports said Investindustrial and Clessidra were working on a €40m to €60m investment in MTP Sapa, one of the holding companies through which chairman Marco Tronchetti Provera controls Pirelli.
Tronchetti Provera also owns the business through holding companies GPI and Milan-listed Camfin.
The investment will allow Tronchetti Provera to subscribe to a capital increase in GPI to pay down debt and maintain control of the company, which has seen its market capitalisation climb above €4bn following news of the talks.
GPI approved a €45m capital increase in September to repay a bank debt of €41m due this month.
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