Pirelli bidder ChemChina seeks to convince hedge funds it will not boost public offer - report (translated)
ChemChina is seeking to convince hedge funds that there is no prospect it will increase its EUR 15 per share offer for Pirelli [BIT:PC], the listed Italian tyre manufacturer, Italian language daily Il Sole 24 Ore reported.
The unsourced report said the funds which are believed to hold 15%-20% of Pirelli's stock and seek to have the public offer increased to EUR 15.2-15.3 per share.
However, the item said ChemChina is indicating that rather than increasing the offer, it will opt for keeping Pirelli listed if subscription to its public offer fails to reach the 90% threshold.
The report noted ChemChina is understood to have hired Intermonte to get its view on the matter across.
The hedge fund Paulson holds 6.046%, while funds Farallon and Fortress Capital hold stakes as well, the article added.
Pirelli has a market cap of EUR 7.4bn.
The original article appeared in print; Page 28
Source Il Sole 24 Ore