Pirelli subject of insider trading investigation

MILAN, Italy (Aug. 3)—Pirelli S.p.A. is the subject of an insider trading investigation by Italian authorities, following spikes in both volume and share price two to three days before it announced its new tire production system in December. The Italian organization which monitors activity on the country´s stock exchange, Commissione Nazionale per le Societa & La Borsa or the "Consob," sent the Milan prosecutor´s office a report July 24 on possible insider trading of Pirelli shares prior to the tire maker´s December announcement of its new Modular Integrated Roboticized System. According to a European analyst who asked not to be named, Pirelli´s stock jumped 10 percent and volumes tripled and quadrupled before the announcement. Pirelli did not return telephone calls on the matter but has denied any connection in written statements and July 26 filed a complaint with the prosecutor´s office over the legality of the Consob making the investigation public.