Sinochem International (SHA:600500) said it could seek legal redress against Italy's curbs to limit the company's influence in tire manufacturer Pirelli, Reuters reported Monday, citing a statement issued by Sinochem unit Marco Polo International Italy.
Limits issued by Prime Minister Giorgia Meloni's office curbs included cutting the number of Sinochem representatives in Pirelli's board to three from eight, as long as the Chinese company's stake remains above 9.99%.
"The company expresses its deep regret regarding this decision and reserves the right to pursue all necessary legal remedies to safeguard its legitimate shareholder rights and interests," Reuters quoted Sinochem as saying.
Sinochem is the largest shareholder in Pirelli with 34%, while Camfin holds 26%, the report said.
Pirelli and Camfin called for restrictions against Sinochem as its Chinese links could complicate the tire company's U.S. expansion, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)