Czech Billionaire Reportedly in Talks for Purchase of Pirelli Minority Stake

Czech billionaire Michal Strnad is in negotiations for a potential purchase of a 14% stake in Pirelli (PIRC.MI) from Sinochem Holdings, Bloomberg News reported Friday, citing people familiar with the matter. The transaction, which could help limit the Chinese state-owned conglomerate's control over the Italian tire manufacturer, may face regulatory challenges, including seeking approval from Chinese authorities, according to the sources. There is also no assurance that a deal will be made, they added. Sinochem currently owns a 34.1% stake in Pirelli, according to the latter's website. Sinochem and Pirelli did not immediately respond to requests for comment.