The changed international circumstances, more than likely refers to the sharp fall in the share price of Olivetti. Pirelli had agreed, along with Benetton, to buy a 23% stake in Olivetti. The companies agreed to pay a hugely inflated fee of 80% over premium. They were widely criticized for this measure, a problem that has been exacerbated since the fall in the value of Olivetti’s stock. Olivetti shares are worth less than a quarter of the EUR4.17 Pirelli agreed to pay for the controlling stake. Shares in Pirelli itself have fallen 60% from their yearly high EUR4.1.
Even if Pirelli take control of Olivetti, they still have to seek regulatory approval from the European commission before the deal can go ahead.
