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The stock dropped sharply after activist investors from Grizzly Research claimed Pirelli had close connections to Russia and was indirectly supporting the Russian military. Grizzly Research holds a short position in these stocks, and the activists are gaining from their drop.
The activists assert that they have identified inconsistencies between Pirelli's reported revenues and information from Russian sources. They claim that 10% of the tire manufacturer's net income is generated from Russian operations, while Pirelli indicates that Russia, the Middle East, Africa, and India together represent 6% of its revenue.
Grizzly Research furthermore asserts that the Pirelli tire center in Donetsk provides services to Russian military members. Activists stated they contacted the center and Pirelli's Russian hotline and successfully placed orders.
The Kirov plant of Pirelli is situated on the same grounds as a Russian research institute of Rostec. Grizzly Research asserts that this institute holds a 25% share in various Pirelli assets in Russia, and that a different minority shareholder with a 9.99% stake seems to be closely linked to it.
Pirelli asserted that the claims made by Grizzly Research are "false." The firm has directed its legal team to "pursue measures in all territories" to safeguard its business image and investors.
source: reuters.com
The activists assert that they have identified inconsistencies between Pirelli's reported revenues and information from Russian sources. They claim that 10% of the tire manufacturer's net income is generated from Russian operations, while Pirelli indicates that Russia, the Middle East, Africa, and India together represent 6% of its revenue.
Grizzly Research furthermore asserts that the Pirelli tire center in Donetsk provides services to Russian military members. Activists stated they contacted the center and Pirelli's Russian hotline and successfully placed orders.
The Kirov plant of Pirelli is situated on the same grounds as a Russian research institute of Rostec. Grizzly Research asserts that this institute holds a 25% share in various Pirelli assets in Russia, and that a different minority shareholder with a 9.99% stake seems to be closely linked to it.
Pirelli asserted that the claims made by Grizzly Research are "false." The firm has directed its legal team to "pursue measures in all territories" to safeguard its business image and investors.
source: reuters.com
