Italy resisting calls from Pirelli to tighten curbs on Chinese shareholder, sources say
By Giuseppe Fonte and Giulio Piovaccari
ROME (Reuters) -The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor, sources said.
Chinese state group Sinochem is Pirelli's largest investor with a 37% stake, while Tronchetti Provera's Camfin vehicle holds a 27.3% shareholding. Tronchetti Provera has been the company's top boss for more than three decades.
Pirelli itself and Camfin are at odds with Sinochem, claiming that its substantial holding poses a risk to Pirelli's ambitions to expand its business in the United States.
Washington is cracking down on Chinese technology in the automotive industry, by banning key software and hardware from Chinese-controlled companies in connected vehicles on U.S. roads.
Tronchetti Provera is lobbying the government to take further action to limit the Chinese influence at Pirelli, two sources familiar with the matter said, by strengthening the restrictions that Rome imposed on Sinochem in 2023 through the golden power rules aimed at protecting strategic assets.
However, Prime Minister Giorgia Meloni's administration has so far rebuffed these calls, the sources added, asking not to be named due to the sensitivity of the matter.
Rome's cautious stance partly stems from concerns it would rely excessively on its golden powers, one of the sources said, at a time when Italy faces a legal dispute with UniCredit over the way it uses the tool in vetting banking deals.
All parties declined to comment.
The government, which has ruled that Pirelli must not be subject to instructions from the Chinese investor, last November launched an investigation to check whether the presence of Sinochem executives on the tyremaker's board was in breach of these curbs.
The inquiry is under way and before considering a harder stance on Sinochem, the government will at least check for violations of existing restrictions, the second source said.
FAR APART
Emanuele Orsini, the head of Italian business lobby Confindustria of which Pirelli is a leading member, called on the government to defend the autonomy of the Italian group.
"Part of Pirelli's shareholding, which is now in the hands of the Chinese government, is not approving the balance sheets and is therefore jamming up Pirelli, so I think something has to be done," Orsini said on Wednesday.
In previous remarks on Tuesday, Orsini argued Sinochem should cut its stake in Formula One tyre supplier Pirelli to below 25%.
Talks over governance adjustments have so far failed, with Camfin and Sinochem remaining far apart.
Last month, the Chinese company described a proposal put forward by Pirelli to solve problems as "seriously unfair", while Camfin said that Sinochem's approach could lead to breaking the shareholder pact still in place between the two largest investors.
Should the agreement be dropped, Sinochem and Camfin would be in a position to present separate slates at Pirelli's shareholders' meeting (AGM) next year, with one of them potentially taking full control of Pirelli's board.
Two separate sources told Reuters that Tronchetti Provera was relying on further government support through golden powers in the event of a final clash with Sinochem at the AGM.
Pirelli has been posting good results despite ongoing struggles in the auto industry. Its net profit rose 27% in the first quarter, while revenues were up 4%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Epoch Times
38 minutes ago
- Epoch Times
US Revoking Chinese Student Visas Is a Matter of National Security, Not Brain Drain
Commentary As the Trump administration revokes visas for Chinese students, critics cry xenophobia, but evidence shows that the United States has been training and funding China's future military and tech dominance.
Yahoo
2 hours ago
- Yahoo
Jeff Bezos & Lauren Sanchez's Prenup Expected to Survive Any ‘Legal Challenge'
As Jeff Bezos and Lauren Sanchez's wedding date nears, the businessman gears up with a watertight prenup. The couple will tie the knot in Venice in a lavish three-day ceremony from June 24 to 26. However, a recent report suggested that the businessman refuses to gamble with his fortune. Prominent California lawyer Alphonse Provinziano reportedly claimed that the robust agreement is more complex than business mergers and will survive any 'legal challenge.' RadarOnline exclusively learned from Alphonse Provinziano about Jeff Bezos and Lauren Sanchez's prenup weeks before their wedding. Provinziano, who regularly works alongside celebrities and wealthy A-listers, compared the complexity of the agreement to some business mergers. He claimed Bezos' intention wasn't just to devise any prenup, but one that would 'survive any legal challenge.' The lawyer further explained that certain states mandatorily require prenups to be 'conscionable.' This allows fairness to both parties and proves essential to the side with fewer resources, which is Sanchez in this instance. Provinziano made it clear that Bezos was under an obligation to maintain full disclosure with his fiancée. Additionally, he offered her facilities such as her own team of lawyers and more than enough time to review and analyze the agreement. Alphonse Provinziano disclosed more details about what Jeff Bezos and Lauren Sanchez's prenup and other documentation entail. 'For someone as rich as Bezos, that means preparing documentation of the complex accounting arrangements and business deals he's involved in,' the lawyer announced. He further elaborated that this would prevent the journalist from claiming 'that he hid certain assets from her' if things go south in their marriage. Provinziano said it has been 'a lot of work for teams of lawyers.' The couple is ramping up to say their vows in one of the most extravagant wedding ceremonies. A source aware of the preparations claimed, 'People are almost hysterical with excitement – from water taxis to the hotel concierges.' Reportedly, the nuptials will happen at a centuries-old Italian villa, with guests including the Kardashian-Jenners and other Hollywood A-listers attending. The post Jeff Bezos & Lauren Sanchez's Prenup Expected to Survive Any 'Legal Challenge' appeared first on Reality Tea.
Axios
2 hours ago
- Axios
The great poaching: America's brain drain begins
The Trump administration's spending cuts and restrictions on foreign students are triggering a brain drain — and American scientists are panicking. Why it matters: U.S. researchers' fears are coming true. America's science pipeline is drying up, and countries like China are seizing the opportunity to surge ahead. 'This is such a race for being the science powerhouse that you never fully recover,' says Marcia McNutt, president of the National Academy of Sciences. 'You might accelerate back up to 60, but you can't make up for those years when you were at a standstill while the competition was racing ahead.' Driving the news: The National Science Foundation, which funds much of America's fundamental science research, is already doling out grants at its slowest pace in 35 years, The New York Times reports. More cuts to science could come with the "big, beautiful bill." Universities are also watching with bated breath as the administration tries to limit the number of foreign students studying in the U.S.. Harvard is pushing back, but could face a total ban on recruiting internationally. The Trump administration says it will " aggressively revoke" visas for Chinese students studying in "critical fields." By the numbers: While American universities are rescinding offers to incoming PhD students, other countries are recruiting heavily from U.S. labs. The journal Nature analyzed data from its jobs platform to track where scientists are looking for work. In the first few months of the Trump administration, there were jumps in the the number of U.S. applicants looking for jobs in Canada (+41%), Europe (+32%), China (+20%) and other Asian countries (+39%), compared to the same period in 2024. U.S. jobs saw fewer applications from candidates in Canada (–13%) and Europe (–41%). Case in point: France's Aix-Marseille University, which made headlines for earmarking millions of dollars for U.S. scientists, closed its application window after receiving a flood of apps. After American Nobel laureate Ardem Patapoutian's federal grant was frozen, he got an email from China offering 20 years of funding if he relocates his lab, The New York Times' Kate Zernike writes. He declined. 'This is a once-in-a-century brain gain opportunity,' the Australian Strategic Policy Institute wrote in a brief. The other side: The White House argues that its changes to the system will usher in a golden age of science and rebuild public trust. President Trump has also suggested that spots freed up by rejecting international students could be filled by American applicants. But professors say this isn't entirely realistic. "In hard sciences, in astronomy and physics and computer science, for example, there's no way you would fill that hole with local applicants of comparable quality," says Chris Impey, an astronomer at the University of Arizona. What to watch: 'The optimistic part of all of us thinks science is strong enough to outlast one administration, and for a while I thought that, but the hit to young people is at the center of the whole enterprise,' Impey says. 'It's like pulling the rug out from under the whole thing." It's not just brain drain of existing talent, he says. Students who are in high school and college now and thinking about a career in research might reconsider. "There's plenty of things smart kids can do. They don't have to go into science." At the same time, McNutt says she tells students: "If you went into graduate school in the fall of this year, by the time you get your PhD, this madness may be over. You come out with your new PhD ready to fill the gap."
