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Pirelli quashes sale of real estate funds 'rumour'

Italy’s Pirelli group issued a flat denial today that it is contemplating the break up and sale of its real estate funds under management contrary to various press reports.

Pirelli, the Italian firm best known for manufacturing tyres, denied reports today that it is contemplating the sale of real estate funds under management.

The Milan-based group, whose head of real estate Carlo Puri Negri resigned last week, responded to 'rumours' by some media about possible solutions it is studying in relation to raising capital. One such option involved the scission and then sale of its real estate funds.

However, in a move to quash rumours, the company said:  “Pirelli for its part categorically denies that there are any such transactions under review, or even such hypotheses.”

La Repubblica newspaper had reported that Assicurazioni Generali may consider buying some of Pirelli property ahead of a €400 million capital increase.

Last week the firm announced that Puri Negri, the man widely credited with growing Pirelli Real Estate into a powerful player in Italian real estate, is leaving the company.

As well as restricting its geographical areas to Italy, Germany and Poland, the real estate division is also cutting operating and fixed costs hoping that this will save €50 million this year. In coming months it will work on restructuring its non performing loans business.