PIRELLI, the Italian tyre and telecoms giant, has appointed Goldman Sachs to float off its tyre business for about €3 billion (£2 billion), it emerged yesterday.
Pirelli is planning to sell a 40 to 45 per cent stake in the tyre operation. The American investment bank is expected to float the business this summer.
The move comes as Pirelli, well known for its nude calendars, seeks to change its brand image and marketing strategy by releasing a dramatic short feature film starring John Malkovich and Naomi Campbell. The film will be distributed next month, initally on the internet.
A surge on the Milan stock exchange yesterday was led by gains in Pirelli shares after plans to float part of its business were leaked. Pirelli rose 1.38 per cent to €0.83. The Pirelli board is expected to meet today to approve the flotation proposal.
The new film venture, Pirellifilm, is Pirelli’s first foray into the world of cinema. Pirelli said that it would make an annual short film using stage and screen stars to interpret the Pirelli advertising claim, “Power is nothing without control”, in a different way each year.
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It hopes to distribute the first film, The Call, in cinemas as well as on the internet and through mobile phones. The Call is directed by Antoine Fuqua, who won Oscars for Training Day and King Arthur. Malkovich plays an exorcist priest fighting against the powers of evil, represented by Naomi Campbell.