Pirelli Reports China Investors' Appeal Against Italy's Golden Power Measure
China National Tire & Rubber Corporation Appeals Italian Government Conditions
ROME, June 8 (Reuters) - Pirelli said on Monday China National Tire & Rubber Corporation (CNRC) and its unit Marco Polo International had appealed, separately, to an Italian regional administrative court against government-imposed conditions linked to their stake in the tyre maker.
CNRC's Stake and Shareholding Structure
CNRC, a unit of China's state-owned Sinochem, is Pirelli's largest shareholder through Milan-based vehicle Marco Polo International, which holds a 34.1% stake in the tyre maker.
Details of the Appeal
Annulment Sought for Golden Power Decree
The appeals seeks to annul measures set out in a decree issued in April under Italy's so-called "golden power" rules, which allow the government to impose conditions on investments deemed strategic.
Board Representation Restrictions
Reduction in Sinochem's Board Seats
Among the terms set, in April Italy cut the number of representatives Sinochem can name to Pirelli's next board to three from eight, in an effort to avoid U.S. restrictions on the Italian group.
Impact on Pirelli's Shareholder Meeting
Pirelli said the legal action would not affect "the regular conduct" of the shareholder's meeting scheduled for June 25.
(Reporting by Mirko Miorelli, editing by Giulia Segreti)
