The Malacalza Family in the Strategic Acquisition of an Interest in CAMFIN, Pirelli’s Largest Shareholder

June 16, 2009

Cleary Gottlieb represents Hofima S.p.A., the holding company of the Malacalza family, in the acquisition of 3.5% of the share capital of the Italian listed company CAM Finanziaria S.p.A. (CAMFIN), Pirelli & C. S.p.A.’s largest shareholder. Hofima is expected to gradually increase its participation in CAMFIN up to a maximum participation of 25%, including by underwriting a portion of the shares that will be issued in the context of a forthcoming rights issue linked to the rescheduling of CAMFIN’s debt exposure. Through this investment in CAMFIN and the entering into force of a shareholders’ agreement with Gruppo Partecipazioni Industriali S.p.A., the controlling company of CAMFIN (in turn controlled by Marco Tronchetti Provera, Pirelli’s CEO), Hofima is expected to become a strategic partner of CAMFIN. The parties entered into the purchase agreement on June 11. The deal is expected to close by October.

Hofima carries out its activities in the high technology sector, through various companies, including Asg Superconductors S.p.A. (a company once controlled by Ansaldo Energia, active in the superconductivity field) and Aurora Technologies Inc. (magnetic resonance devices); in the construction and plant systems; and finally in the steel industry, through the trading company Baosteel Italiana Distribution Center S.p.A. (a joint venture with Baoshan, the largest steel producer in the People’s Republic of China).