MILAN, Italy — Pirelli & C. S.p.A. has deferred the nomination of its new slate of directors as the firm's shareholding structure is being investigated by the Italian government.
A list of board candidates was due to be issued on June 4 and voted on at the group's June 29 shareholders' meeting, Pirelli said.
However, the process has been delayed by the Italy's continuing probe into the level of Chinese ownership of Pirelli, the company noted.
Pirelli will, therefore, seek to postpone the board nominations to a subsequent shareholders' meeting, to be held "presumably" by July 31.
Italy's government triggered the "golden power" procedure in April after a Sinochem notification of plans to renew Pirelli's year-old shareholder agreement.
The government has power to impose conditions or veto transactions, investments or corporate resolutions that could threaten Italian public interests.
Chinese group Sinochem holds a 37% stake in Pirelli, through its investment vehicle Marco Polo International.
Other major investors include Silk Road Fund (9%), Camfin (14.1%), LongMarch (3.7%) and Brembo S.p.A. (6%).
The remaining shares are owned mainly by institutional investors and as well as retail investors, among others.
This article appears on European-Rubber-Journal.com.