MILAN (July 17, 2008) — Pirelli & C. S.p.A. has repurchased the shares of Pirelli Tyre S.p.A. it sold two years ago.
The tire maker completed the transaction, announced March 11, by taking full ownership of Speed S.p.A., a holding company set up in August 2006 by seven investment firms to carry out their purchase of a 38.9-percent stake in Pirelli Tyre. Pirelli acquired about half the stake in March and the remaining 19.2-percent share July 9.
Those financial institutions—Intesa Sanpaolo, Banca Leonardo Group, UniCredit, One Equity Partners—JP Morgan Group, Lehman Brothers and Mediobanca—agreed in March to sell their holding back to Pirelli for the equivalent of $1.28 billion.
Pirelli paid $664.6 million in cash and assumed $613.7 million in debt to acquire the shares—a premium of nearly 13 percent over the value of the stake in August 2006 when it was sold.