On January 27, 2009, Brembo, Magneti Marelli and Pirelli announced that they had launched a technological cooperation initiative with the aim of developing hi-tech solutions for the Italian and international automotive industry.
The Cyber Tyre, the intelligent tyre developed by Pirelli, will be integrated with Magneti Marelli’s electronic control systems and Brembo’s hi-tech braking systems to create special technological solutions which will meet the performance and safety requirements of every kind of user.
The competence and expertise of the three Italian companies is recognized at an international level. By combining their experience, they aim to create important synergies and to develop applications, especially in the field of car safety systems. Another aim of the project is to reduce environmental impact, and develop applications that are in line with international regulations and which reflect the new CO2 limits established by the EU, scheduled to come into force in 2012.
On February 11, 2009, the Pirelli Group presented the guidelines of its 2009-2011 Industrial Plan.
On March 5, 2009, the Pirelli Real Estate board of directors confirmed the resolutions passed in February authorizing a share capital increase against payment, divisible, to be offered as option rights to the shareholders for a maximum amount of euro 400 million. The transaction is aimed at strengthening the company’s equity structure and supporting its new business model. The share capital increase is expected to be completed by the end of the first half of the current year, assuming that it will be approved by the special session of the shareholders’ meeting called at the same time as the ordinary session of the shareholders’ meeting that, among other things, will resolve on the approval of the financial statements for the year ended December 31, 2008, and that the necessary authorizations will also be obtained from the relevant authorities.
Pirelli & C. S.p.A. has given its full support to the capital increase and has made a commitment to subscribe to its share equal to Euros 226 million. The company has also stated that it will subscribe to any unsubscribed shares that remain at the end of the offer period for a total amount of Euros 174 million. Pirelli & C. S.p.A. will fulfill its obligation by converting to equity a part of the financial receivable due from Pirelli RE, amounting to Euros 491 million at December 31, 2008.
On March 24, 2009, Pirelli and Alcatel-Lucent reached an agreement for the sale to Alcatel-Lucent by Pirelli of its investment in Alcatel-Lucent Submarine Networks, a telecommunications submarine systems company. The deal took place after Pirelli exercised the put option contracted between the two companies in 2004 when the agreement had been sealed with Alcatel for the acquisition of some of Pirelli’s activities in submarine systems. The sale, for a total amount of Euros 56 million, will be paid in three tranches by the end of 2009. Pirelli’s divestiture is consistent with its strategy of focusing on the core business as announced by the Group upon presentation of the Industrial Plan 2009-2011.