14MB - Pirelli

EXTRAORDINARY SESSION CONSOLIDATED FINANCIAL STATEMENT SUSTAINABILITY REPORT DIRECTORS' REPORT PRELIMINARY INFORMATION
The competence and expertise of the three Italian companies is
recognized at an international level. By combining their experience,
they aim to create important synergies and to develop applications,
especially in the field of car safety systems. Another
aim of the project is to reduce environmental impact, and develop
applications that are in line with international regulations and
which reflect the new CO 2
limits established by the EU, scheduled
to come into force in 2012.
On February 11, 2009, the Pirelli Group presented the guidelines
of its 2009-2011 Industrial Plan.
On March 5, 2009, the Pirelli Real Estate board of directors confirmed
the resolutions passed in February authorizing a share
capital increase against payment, divisible, to be offered as option
rights to the shareholders for a maximum amount of euro 400 million.
The transaction is aimed at strengthening the company’s equity
structure and supporting its new business model. The share
capital increase is expected to be completed by the end of the
first half of the current year, assuming that it will be approved
by the special session of the shareholders’ meeting called at the
same time as the ordinary session of the shareholders’ meeting
that, among other things, will resolve on the approval of the financial
statements for the year ended December 31, 2008, and that the
necessary authorizations will also be obtained from the relevant
authorities.
Pirelli & C. S.p.A. has given its full support to the capital increase
and has made a commitment to subscribe to its share equal to Euros
226 million. The company has also stated that it will subscribe
to any unsubscribed shares that remain at the end of the offer period
for a total amount of Euros 174 million. Pirelli & C. S.p.A. will
fulfill its obligation by converting to equity a part of the financial
receivable due from Pirelli RE, amounting to Euros 491 million at
December 31, 2008.
On March 24, 2009, Pirelli and Alcatel-Lucent reached an agreement
for the sale to Alcatel-Lucent by Pirelli of its investment
in Alcatel-Lucent Submarine Networks, a telecommunications
submarine systems company. The deal took place after Pirelli exercised
the put option contracted between the two companies in
2004 when the agreement had been sealed with Alcatel for the acquisition
of some of Pirelli’s activities in submarine systems. The
sale, for a total amount of Euros 56 million, will be paid in three
tranches by the end of 2009. Pirelli’s divestiture is consistent with
its strategy of focusing on the core business as announced by the
Group upon presentation of the Industrial Plan 2009-2011.
40 PIRELLI & C. S.p.A. MILAN