Chinese investor challenges control limit over Pirelli

The Chinese company China National Tire & Rubber Corporation (CNRC) and its subsidiary Marco Polo International have filed separate appeals to the Italian regional administrative court, challenging the legitimacy of the restrictions imposed by Rome regarding the management of Pirelli.

CNRC is part of the state-owned holding company Sinochem and, through the Milan-based firm Marco Polo International, owns a 34.1% stake in the tire manufacturer, making it the largest shareholder. In April, the Italian authorities banned Chinese representatives on Pirelli's board of directors from holding senior corporate positions and established a number of other restrictions.

The government is acting in accordance with the so-called "golden power" rule, created to protect strategic assets, and the Chinese investor intends to use the court to annul the April decree.

Pirelli noted that the legal proceedings will not affect the holding of the shareholders' meeting scheduled for June 25.