June 28, 2017 / 8:00 PM / a year ago

Shares in Italy's Prelios gain 10 percent on report of Chinese bid

MILAN (Reuters) - Shares in Italian asset manager Prelios shot up 10 percent on strong volumes and were suspended from trading on Wednesday after a report in the local press about a bid from Chinese conglomerate CEFC.

The Milano Finanza website reported investors in Prelios, which is owned by tire maker Pirelli and banks UniCredit and Intesa Sanpaolo, had agreed to sell their stakes in Prelios to CEFC.

The report said the sale would trigger a mandatory takeover bid on remaining Prelios’ shares which would be launched at a premium of 20-25 percent to current market prices.

Prelios declined to comment. CEFC was not immediately available for comment.

Following a request by market regulator Consob, Intesa, UniCredit and Pirelli said in a joint statement that the press report was a “matter of imprecise reconstructions of operations which are under negotiation but, at the moment, have not been realized and are not certain”.

The three companies added that should an agreement be reached, they would inform the market promptly.

Reporting by Elisa Anzolin; editing by Susan Thomas

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