China’s Sinochem says it has proposed a ‘solution’ to end governance dispute over Pirelli

Pirelli’s Chinese shareholder Sinochem said on Monday it had put forward a “structured solution” ‌to end a governance dispute with the tyre maker’s ‍Italian investor Camfin.The announcement comes as the Italian government assesses options to limit Sinochem’s influence over Pirelli, or even turn it into a passive shareholder, in ⁠a bid to ease the tyre maker’s US expansion.Beijing-controlled Sinochem is Pirelli’s largest shareholder with a 34.1 per cent stake while Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, holds a 25.3 per cent stake, with plans ‍to increase it to up to 29.9 per cent.Camfin said last week ‍it would not renew its shareholder pact with Sinochem, paving the way for a new intervention ‌by the Italian government on the tyre maker’s governance through so-called golden power legislation ‍aimed at preserving the national interest on business matters.Sinochem said in a statement on Monday it had submitted a “structured, well-founded proposal based on standard and widely used ‌corporate ⁠tools in line with best international practice, with the objective of addressing both Pirelli’s governance framework and the concerns relating to US regulatory requirements if any”.Camfin and Pirelli itself complain that having ‌a Chinese company as its main shareholder poses a hurdle to the group’s US expansion, as Washington tightens restrictions ‌on Chinese technology in ‌the automotive sector.