STOCKS NEWS EUROPE-Pirelli RE up on spin-off expectations

Shares in Italian real estate company Pirelli Real Estate (PCRE.MI) are higher on expectations it could be spun off from parent group Pirelli & C (PECI.MI) sooner than expected.

On Wednesday, the Pirelli group and real estate asset manager Fimit-Fondi Immobiliari Italiani announced a joint feasibility study to integrate Pirelli RE and Fimit assets. [ID:nLB307373]

Pirelli & C owns 56.4 percent of Pirelli RE.

According to a report in Il Sole 24 Ore on Thursday the study envisages the proportional spin off of Pirelli RE to Pirelli shareholders and its merger with Fimit.

"The news is positive since it demonstrates that Pirelli & C is fully committed to the spin off of the real estate business and that this initiative could come sooner than expected," Milan broker Banca Akros says in a note on Pirelli & C on Thursday.

Milan broker Equita says such an operation would be positive for Pirelli RE since it would strengthen its capital base and create one of Europe's leading asset managers.

At 1200 GMT Pirelli RE is up 4.6 percent, while Pirelle & C is up 2.4 percent.

Reuters Messaging rm://stephen.jewkes.thomsonreuters.com@reuters.net