Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.

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PEERS&MARKETS 12.07-16.07.10The week from 12 to 16 July was a bad one for European stock exchanges (Milan -1.6%, Paris -1.5%, Frankfurt -0.4%). Investors were disappointed by the US macroeconomic data (FED index, production prices, consumer confidence) and the quarterly reports from US banks (sector index –3.8% in the US, and -2.6% in Europe), with credit recovery difficulties, due in part to the unemployment rate.
European Auto&Part shares bucked this trend (+3.4%), after the JP Morgan promotion (attractive valuation), with purchases concentrated mainly on automotive shares after revision of the 2010 guidance by BMW (+7.7%).
Pirelli closed the week at €0.479 (+0.4%): Morgan Stanley and Cheuvreux confirmed their positive assessment, which envisaged 2010 sales trends for business tyres better than those in the guidance.  Consensus TP stable at €0.53, Buy the prevalent recommendation.
The extraordinary shareholders’ meeting held on 15 July approved the reverse split of the ordinary and savings shares of 1 new share for every 11 shares of the same category owned.
The reverse share split will presumably be effective from 26 July 2010, or, if the technical times should require it, from 2 August 2010. The shareholders’ meeting also approved the separation of Pirelli RE by allocating one ordinary Pirelli RE share to each Pirelli &C. ordinary or savings share owned after the reverse split. It is expected that this allocation will be completed by next October, after the period required by the current law.
Since the start of the year, Pirelli shares have risen 14% (+27.3pp against the FTSE Mib), making it the third best performing group in the Milan stock exchange basket of Blue Chip share.
The performance of Pirelli RE reflected that of the sector as a whole, closing at € 0.361 (+0.3%). During the week an extraordinary shareholders’ meeting approved the change of name of the company to “Prelios” and a share capital increase of 20 million euro reserved to Mediobanca and Unicredit.

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