The hypothesis of a reorganization with opa reports on Pirelli maximum of 1990 – Milano Finanza

Air reorganization for Galaxy Pirelli & amp; C. The action runs on the stock, above the threshold of 15 Euros, in the wake of press rumors that the group led by Marco Tronchetti Provera would be studying a reorganization with the entry of new members from Asia (the Korean Hankook, Yokohama Japan, the China Chemical Corporation or Zhongce Rubber Company) but with the confirmation of management autonomy to Tronchetti for the next five years.

The title, as so far the company has not denied anything, when salt of 3.33% to € 14.91 after peaking at 15.18 euro, level not seen since June 1990. The agreement should include a shareholders’ agreement that would enter Long Term Investment (corporate vehicle of Rosneft), Tronchetti, Rovati, Diaz, Intesa , Unicredit and indeed the new Asian partners.

The operation in the study, according to these sources of print, provides totalitarian takeover bid that would be launched by the new members along with Tronchetti, allies of New Investments more Intesa Sanpaolo and Unicredit . Objective: delisted and then proceed with the reorganization which could also vary the scope of activities of the group (such as the sale of the business industrial tire) which recently probed the market looking for a partner for the business of the trucks , which would allow Pirelli to focus even more on the premium segment.

“The plan would in advanced , but would ro still some important aspects that were not still addressed “, emphasize in a statement today to analysts at Bank Akros. “The p artners Russian Rosneft , which joined Pirelli only years ago, would quite puzzled and also recent increased share price not help much this project “ .

The current target price of Equita on Pirelli to 15.5 euro per share (multiple price / 2016 adjusted earnings of 13.6 times) and Banca Akros to 12 euro does not include any upside from a possible partnership with Asian operators. Assuming the spin-off of the industrial division and applying the multiples of Nokian (with a 20% discount for the consumer division), the target price for Equita would be well over 18 €.

Experts Banca Akros believe that a possible takeover bid for Pirelli may launched with a premium of 10 % compared to current price . “If we do calculate very fast, we get to the the conclusion that, if Pirelli sell his shared production industrial tire and focuses on the premium segment , the market could evaluate its EBITDA more in line with to Nokian , that is a 9.6 times enterprise value / EBITDA 2015 instead of the 6.8 times the current , thus adding some 5.7 euro to every action Pirelli “, simulate Banca Akros.

So for analysts focusing Pirelli on the premium segment has a lot of sense,” but this pattern takes us by surprise. Having already witnessed three revolutions as shareholders in the last six years, and knowing that Pirelli is looking for a partner for the truck, we believe that a reorganization would really be in the study,” conclude the analysts Equita than action maintain buy rating. While Mediobanca Securities reiterated neutral rating with a target price of EUR 14.50 and Banca Akros hold.