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Article: Plenty of bravado, but not bravo; Pirelli buys Telecom Italia.(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- August 4, 2001
CopyrightCOPYRIGHT 2001 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A risky move into telecoms has upset a lot of shareholders
PIRELLI'S shareholders see nothing to cheer about. Shares in the Italian tyres and cables group lost over one-sixth of their value on July 30th, as the market said what it thought about the firm's big move into telecommunications, announced over the weekend. Flanked by the Benetton family's Edizione Holding, Pirelli has acquired a 27% stake in Olivetti, giving it effective control over the company that in turn pulls the strings at Telecom Italia, Italy's leading telecoms group.
Investors had been expecting something different from Marco Tronchetti Provera, Pirelli's chairman. Some had hoped to ...