30
June
2006
|
19:12
Europe/Amsterdam

Pirelli Tyre: global offering withdrawn due to the negative performance of markets

THE BOARD OF DIRECTORS OF PIRELLI & C. SPA MET:

  • Pirelli & C. decided not to proceed with the IPO operation which, under present conditions, would not have adequately valued a company recognized as one of the world's key operators in terms of profitability, positioning and capacity for innovation
  • The decision was reached taking into account Pirelli & C.'s financial solidity which, without any extraordinary operations, will allow the company to fulfil all its expected commitments towards Olimpia shareholders
Milan, 30 June 2006 - The Board of Directors of Pirelli & C. SpA met today, at the conclusion of the Offer period for the shares of Pirelli Tyre SpA, and resolved, following a similar deliberation by Pirelli Tyre Holding, not to proceed with the IPO operation.
Pirelli & C SpA believes that the present condition of financial markets and the stock market performances of the world's leading operators in the tyre sector, in particular, have not allowed the attribution to Pirelli Tyre SpA of a value which faithfully and adequately reflects the companys intrinsic value.
With its financial solidity, enabling it, without extraordinary operations, to meet all expected commitments towards the shareholders of Olimpia, Pirelli & C decided not to proceed with an operation which, under present conditions, would not have adequately valued a company which is core to the Groups business and recognized as one of the key world operators in terms of profitability, positioning and capacity for innovation.

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