Pirelli holding to sell up to 40 pct of property arm

The holding company that controls the Pirelli PIRI.MI cables-to-tyres group plans to sell up to 40 percent of its real estate division in an intial public offer, the holding Pirelli & C. PECI.MI said late Thursday.

A maximum of 14.15 million shares in Pirelli & C Real Estate would be offered to the public, 10.1 million of them owned by the holding and the rest from the property arm, Pirelli & C said in a statement.

A further 2.1 million shares would be earmarked for a greenshoe tranche offered to the joint book runners of the IPO, investment banks Mediobanca MDBI.MI and Morgan Stanley MSD.N , the statement said.

Pirelli & C said it would maintain control of the real estate unit and to do so would buy nearly 3.4 million of its shares currently earmarked for a staff stock option plan.

Pirelli & C Real Estate and the real estate fund of Morgan Stanley in March bought property from insurance company RAS RASI.MI in a 1.7 billion-euro deal and from Fiat FIA.MI group for 240 million euros.

(source: Reuters)

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