MILAN, Italy (July 30)—Pirelli S.p.A. plans to sell its truck tire and energy cable units in the coming 18 months as part of a restructuring the firm will undertake following its bid for control of Italian telecommunications concern Telecom Italia. Pirelli teamed up recently with an investment firm controlled by the Benetton clothing family to buy 23 percent of Olivetti S.p.A., the Italian telecommunications giant that owns 54 percent of Telecom Italia. The deal is valued at about $6 billion. Officially, Pirelli said its strategy will be to focus on telecommunications, based on cable, optical fibers' components and telecom services technologies. In addition, Pirelli will operate a small number of high profit margin companies at the top end of their markets—comprising mainly the car, light truck and motorcycle tire operations. Pirelli's commercial tire activities encompass seven plants in six countries on three continents, and represent 33 percent of Pirelli's tire division sales, or $875 million in fiscal 2000 revenue, according to Pirelli documents. Only one of the plants, though, is a facility dedicated to truck tires; the others are mixed product plants. Pirelli does not sell truck tires in North America. The company did not comment on potential buyers for the business. Pirelli and Edizione Holding, the Benetton financial arm, announced their bid July 28.
Pirelli to sell truck tire, energy cable units
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