Pirelli May be Acquired by Chinese Chemical Company

The China National Chemical Corp. is maneuvering to make a €7.1 billion bid to acquire Italian tiremaker Pirelli & Co. SpA.

The deal involves a stake sale by Camfin SpA, a holding company owned by Russian oil company Rosneft and a holding company of Pirelli Chairman/CEO Marco Provera. Rosneft bought 50% of Camfin a year ago.

Camfin proposes to sell its 26% holding in Pirelli at €15 per share to a group of investors led by CNCC. Camfin says the group would then launch a bid to buy Pirelli's remaining shares. Italian media reports say Pirelli is likely to spin off its truck tire operations if the acquisition is successful.

Bankers consider Pirelli a good buy for Asian investors because it is relatively small and offers good profit margins, according to Reuters.