Pirelli Takeover Rumours Cause Conti Shares to Rise
Shares in Continental AG rose 11 per cent on February 6 in response to circulating rumours that Pirelli & C SpA may wish to acquire the company’s tyre business – a move that, should it take place, would give the erstwhile competitors a comprehensive product portfolio. Reuters quoted an unnamed trader as saying “There is a rumour that Pirelli may be interested in Conti’s tyre business.”
Italian magazine Il Mondo has reported that banks have approached the Italian company about buying the Conti business, however neither Pirelli nor Continental have confirmed or denied any such activity. The Il Mondo article claims that Pirelli executives have conducted, on separate occasions, meetings with JP Morgan, Deutsche Bank, Mediobanca and a number of advisers.