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Chinese Fund Sells Pirelli Stake; Spreads Muted

TRANSPORTATION


  • Pirelli equity move comes as the Chinese state-backed Silk Road Fund Co. sells its its 9% stake at a 8.08% discount to last close.
  • Largest holder Sinochem Holdings (37%) is also reportedly considering a sale.
  • Moves come after the Italian gov’t last year took steps to limit influence over the manufacturer on security concerns apparently related to digital tire sensors.
  • Pirelli EUR 28s are 1bp wider having traded essentially sideways YTD.

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