Reuters: Hot Stocks: UPDATE 1-Tronchetti to retain grip on Pirelli with Camfin bid

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-Tronchetti to retain grip on Pirelli with Camfin bid Jun 5th 2013, 10:13 Wed Jun 5, 2013 6:13am EDT * Group to bid 0.8 euros a share for Camfin, then delist it * Tronchetti to remain chairman of Pirelli * Disgruntled shareholder Malacalza to sell Camfin stake * Camfin shares fall as offer at discount to Tuesday's close (adds details on bid, shares) MILAN, June 5 (Reuters) - A group of investors led by Pirelli Chairman Marco Tronchetti Provera will launch a takeover bid for the company that controls the Italian tyre maker, in a move that will consolidate the executive's grip on the business. Tronchetti's consortium will offer 0.8 euros a share to take over Camfin, it said in a statement on Wednesday. The move follows a decision by disgruntled investor Malacalza Investimenti to sell its entire 12.37 percent stake in Camfin after protracted wrangling with Tronchetti. Tronchetti, who already controls the world's No.5 tyre maker through a chain of holding companies, will remain the biggest investor in Camfin through an indirect 54.8 percent stake after the deal and thus continue to wield power over Pirelli. He will also retain the chairmanship of Pirelli, the statement added. Shares in Camfin were down 7.7 percent at 0.79 euros, just below the bid price, which represented a discount of around 7 percent on the price at which the shares were trading immediately before the announcement. The offer values the whole of Camfin at around 627 million euros ($820 million). Shares in Camfin have leapt 210 percent over the last 12 months as the battle for the control of Pirelli escalated. Pirelli shares were up 1.8 percent at 9.07 euros. The investors bidding for Camfin now own 60.99 percent of Camfin and include banks IntesaSanpaolo and UniCredit , and a company linked to private equity fund Clessidra. The group plans to delist Camfin and merge it into the new company formed by the investor consortium, the statement said. Malacalza Investimenti, owned by a Genoa-based family of steel-trading moguls, entered a strategic partnership with Tronchetti when it bought a stake in Camfin in 2009. But the family fell out with Tronchetti last year over how to repay Camfin's hefty debt. ($1 = 0.7650 euros) (Reporting by Lisa Jucca; Editing by Patrick Graham and Mark Potter) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions