Mr Tronchetti Provera gained control of TI through his 60% stake in GPI, a private investment vehicle. Taking advantage of a complex, layered corporate structure, the Pirelli supremo engineered one of Europe’s biggest takeovers without buying a majority stake in the target company.
Last weekend Mr Tronchetti Provera and Pirelli, with financial backing from the Benetton family, agreed to pay EUR7bn for control of TI.
Mr Tronchetti Provera’s EUR100m investment in GPI is at the top of an eight-strong layer of investment companies, known as Chinese boxes.
The mismatch between ownership and control is likely to trouble other TI investors, who suffered from conflicts of interest under its old management, headed by Roberto Colaninno.
