Pirelli Holder Sinochem Mulls Bond to Cut Direct Stake: Corriere

Pirelli & C. SpA’s Chinese investor is weighing the sale of a convertible bond that would temporarily reduce its holding to ease US government scrutiny of the Italian tiremaker, Corriere della Sera reported, citing unnamed sources.

The potential sale by Sinochem Group, Pirelli’s biggest shareholder with about 34%, would surrender a stake of between 10% and 15%, the newspaper reported Sunday. It would also allow the Chinese state-backed group to regain the equity through repayment of the bond at maturity.