14
December
2007
|
13:32
Europe/Amsterdam

Pirelli & C.: Special Meeting of savings shareholders

Special Meeting Of Savings Shareholders Of Pirelli & C. Spa:
  • Reduction Of Share Capital Resolved Upon By Extraordinary Shareholders' Meeting On 12 December Approved: Nominal Value Of Each Share Will Change From 0.52 Euros To 0.29 Euros
  • The Reduction Is Directed Towards Distribution Of An "Extraordinary Dividend" Of 0.154 Euros Per Share (For A Total Of 827 Million Euros) And The Setting Aside Of Reserves For 408 Million Euros
  • It May Be Assumed That The "Extraordinary Dividend" Will Be Paid After Mid March


Milan, 14 December 2007 - A Special Meeting of savings shareholders in Pirelli & C. SpA was held today.

The Special Meeting approved the reduction of share capital of approximately 1,235 million euros resolved upon by the Extraordinary session of the ordinary shareholders' meeting of 12 December. The share capital thus changes from the current 2,791,311,344.64 euros to 1,556,692,865.28 euros by way of reduction of the nominal value of the ordinary and savings shares, which will change from 0.52 euros to 0.29 euros.

The reduction, proposed by the Board of Directors of Pirelli & C. SpA last 9 November, has as its purpose to allow payment to the shareholders of part of the financial resources obtained from the sale of the stake in Olimpia SpA, through distribution of an "extraordinary dividend" of 0.154 euros per share (for a total amount of approximately 827 million euros), as well as to optimize the equity structure of the company, by setting aside to reserves approximately 408 million euros.
It may be assumed that the "extraordinary dividend" will be paid after the first half of March  2008. As far as tax implications, the transaction, realizing a payment of capital, is exempt both for the company and for the shareholder-beneficiaries.