Pirelli and partners close deal
Pirelli & Cie S.p.A., Edizione Finance International S.A. and Edizione Holding S.p.A. together with Hopa S.p.A. have reached full agreement on all aspects of the cash settlement for shareholdings in Olimpia S.p.A. and in Holinvest S.p.A., following the dissolution of the shareholder agreements in force between the above mentioned companies.
The agreement foresees the following:
* the acquisition by Pirelli & C. S.p.A., Edizione Finance International S.A. and Edizione Holding S.p.A. of all the shares of Olimpia S.p.A. (equal to 16% of capital) owned by Hopa S.p.A. for a cash payment of 622 million euros to be paid on July 12, 2006. Based on the July 4 exchange rate, the cash payment totals $796 million.
* the acquisition by Hopa S.p.A. of all the shares of Holinvest S.p.A. owned by Olimpia S.p.A. (equal to 19.999% of capital) for a cash payment of 86 million euros ($110 million) to be paid on July 12, 2006.
Holinvest S.p.A. owns 492,697,862 shares of Telecom Italia S.p.A., equal to approximately 3.68% of ordinary share capital.
Syn&rgetica of Bruno Ermolli advised Pirelli on the joint acquisition.