Significant subsequent events

44. Significant subsequent events

On January 16, 2008, Acea and Pirelli Ambiente announced that the 50-50 A.PI.C.E. joint venture will operate in the sector of sources of renewal energy from waste and will combine Acea’s expertise and territorial roots with Pirelli Ambiente’s experience and technology to carry out projects aimed at the manufacture of CDR-Q, a fuel derived from quality waste which will used in thermo-electric plants and cement factories.

On January 17, 2008, Pirelli unveiled the new Cinturato Pirelli. The tire that set the pace for traveling in style in Italy and in the world starting from the mid-fifties has been reproposed in a new version which combines all of the very best in state-of-the art technologies, safety and ecosustainability.

On February 1, 2008, the new Group company PGT Photonics was formed. It will operate in the sphere of second-generation photonics based on nanotechnologies.

This company is the result of the integration of the photonics business unit of Pirelli Broadband Solutions and the Pirelli Labs Optical Innovation Division. The aim is to create ever-greater synergies between research and business development activities. The company will focus on the areas of innovative optical components, optical modules and transport systems. At the same time, Pirelli Broadband Solutions will concentrate its business activities on broadband access, which increasingly involves market dynamics and technological dynamics which are different from photonics.

On February 22, 2008, the Piedmont Region, the Province of Turin, the City of Settimo Torinese, the Politecnico University of Turin and the Pirelli Group sealed a collaboration agreement aimed at developing research and innovation programs under the project to build a new Pirelli industrial hub in Settimo Torinese. Pirelli plans to invest about Euros 140 million in the Settimo Torinese project.

On February 28, 2008, Pirelli RE SGR and First Atlantic RE SGR concluded an agreement to transfer the management of Berenice Fondo Uffici, receiving the go-ahead from Zwinger which holds more than 90 percent of the shares. Zwinger has committed to acquiring 5 percent of the shares held by SGR for a total of Euros 19.6 million.

On March 11, 2008, Pirelli & C. S.p.A. reached an agreement to acquire the entire share capital of Speed S.p.A., a company in which interests are held by leading financial institutions (Intesa Sanpaolo, Gruppo Banca Leonardo, UniCredit, One Equity Partners – JP Morgan Group, Lehman Brothers and Mediobanca) and, the holder, since August 2006, of the 38.9 percent stake in Pirelli Tyre S.p.A., for Euros 434.4 million which was financed by the company’s liquid resources. The price takes into account a payable by Speed S.p.A. of Euros 401.1 million. The transfer of the Speed S.p.A. shares took place at the closing on March 12, 2008, except for a 19.19 percent stake which is expected to be transferred to Pirelli in July 2008.

On March 19, 2008, a consortium consisting of RREEF, GREF (Generali Group), the Borletti Group and Pirelli RE sealed a binding agreement with Karstadt Quelle AG (Arcandor Group) for the purchase of a 49 percent stake in Highstreet, an investment company which holds the majority of the buildings leased to German department stores.

During the first quarter of 2008, Pirelli & C. S.p.A. purchased 658,000 Pirelli & C. Real Estate S.p.A. shares on the market for a total Euros 15.2 million, bringing its interest to 55.21 percent.