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Italy opens treatment against Sinochem over Pirelli possible governance breach

Pirelli stated on Wednesday that Italy's Prime Minister's Workplace opened an administrative treatment against its biggest investor, China's Sinochem, for a possible breach of provisions Rome imposed to protect the tyremaker's autonomy.

Italy's conservative federal government last year used its Golden. Power legislation, aimed at safeguarding assets deemed strategic. for the nation, to restrict the influence of state-owned Sinochem. on Pirelli.

Under the procedure, Rome set requirements including a. obligatory competent bulk for strategic choices made by. Pirelli's board and ruled that the business should not be subject. to directions from the Chinese group.

Pirelli said on Wednesday the administrative treatment. concerned the possible breach of a requirement to prevent any. organisational or functional links in between Pirelli and Sinochem.

The government's provision is dated Oct. 31 and sets a. 120-day duration for the conclusion of the administrative. treatment, Pirelli stated.

Sinochem holds a 37% stake in Pirelli. The business's 2nd. largest investor, with a 25.7% stake, is Camfin, the car. of Italian businessman Marco Trochetti Provera, who is Pirelli's. executive vice chairman.

Sinochem, through its CNRC lorry, told Pirelli that it. kept to have actually always appreciated the steps set by the. Italian federal government and was positive it would clarify its. position throughout the procedure, Pirelli added.

Sinocherm was not right away reachable for more comment.

(source: Reuters)