EXHIBIT 114
PIRELLI & C. SPA, SINTONIA SPA/SINTONIA SA
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JOINT PRESS RELEASE
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PIRELLI AND SINTONIA: AGREEMENT FOR SALE OF 100% OF OLIMPIA TO PRIMARY
INSTITUTIONAL FINANCIAL INVESTORS AND INDUSTRIAL OPERATORS FOR AN AMOUNT
ABOVE 4 BILLION EUROS
Milan, 28 April 2007 - Pirelli & C. SpA, Sintonia SpA and Sintonia SA declare
that they have reached an agreement with primary institutional financial
investors and industrial operators for the sale of 100% of the capital of
Olimpia SpA, a company 80% owned by Pirelli & C. SpA and 20% owned together by
Sintonia SpA and Sintonia SA.
The acquisition will be effected by a vehicle company owned by Assicurazioni
Generali SpA, Intesa San Paolo SpA, Mediobanca SpA, Sintonia SA and Telefonica
SA.
The provisional price of the sale is about 4.1 billion euros. The definitive
consideration will be determined by the difference between the 2,407,345,359
Telecom Italia shares owned by Olimpia, valued at 2.82 euros each, and the net
financial debt of Olimpia calculated on the closing date of the agreement
including the 337 million euros of dividends cashed in from Telecom Italia.
The transaction will determine a positive impact on the net financial position
of Pirelli & C. SpA of about 3.3 billion euros.
The closing is expected by the end of October 2007.
The transaction, approved by the Board of Directors of Pirelli & C. SpA, which
met today, and by the competent organs of Sintonia SpA and Sintonia SA, is
subject to approval and authorizations by competent authorities.
The Board of Directors of Pirelli & C. SpA, in addition, expressed appreciation
for the transaction and received favourably the proposal by the Chairman, Xxxxx
Xxxxxxxxxx Provera, to evaluate investment opportunities in the core businesses
of the Group (tyres, real estate, broadband and environment).
