Rosneft to Become Pirelli’s Largest Shareholder

Russia's largest oil producer, OAO Rosneft, will become tiremaker Pirelli & Co. SpA's largest shareholder with a 13% stake as part of a complex shuffle in ownership.

Pirelli says Lauro61/Camfin, which currently owns 26% of the tiremaker, will dissolve itself and create a new company. Bloomberg News cites an unidentified source who says Rosneft will invest €500 million to gain a 50% stake in the new company and half its Pirelli holding.

The other 50% of the new company will be owned by a second new entity, this one created by investors who include Pirelli Chairman and CEO Marco Tronchetti. He will own 80% of the second company and retain the power to control the chairman and CEO posts. The remaining 20% stake will be split between Italy's two largest banks, UniCredit and Intesa Sanpaolo.