Pirelli does not plan special dividend for ChemChina deal: sources

Analysts have said that a special dividend could have acted as a "sweetener" to convince shareholders to tender in their shares when ChemChina and Pirelli's current shareholders launch a mandatory bid on the company with a view to de-list it.

The buyout bid price has been set at 15 euros share, but Pirelli's stock is already trading at around 15.5 euros - prompting some speculation ChemChina may have to raise its bid. There have also been press reports of a possible counterbid.

Pirelli will pay a routine dividend on its 2014 results before the buyout offer is launched, and analysts estimate it will be between 0.36-0.44 euros.

One of the sources said there was no intention to pay anything on top of that dividend, whose level will be decided by Pirelli's board on March 31.

The sources also said that Russian oil company Rosneft , which currently holds 13 percent of Pirelli, will cash in 900 million euros ($989 million).

The Russian company will then reinvest 400 million euros in a new holding being created by ChemChina and Pirelli's shareholders, cutting its indirect stake in the Italian company to 5 percent.

The final Pirelli stakes held by each investor will depend on the outcome of the buyout offer. Rosneft's could potentially rise to as much as 18 percent.

Pirelli and Rosneft declined to comment.

($1 = 0.9098 euros)

(Reporting by Paola Arosio and Agnieszka Flak; additional reporting by Denis Pinchuk in Moscow; writing by Silvia Aloisi)

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