China National Chemical Corp's ChemChina takeover bid for Italian tyre group Pirelli is being bankrolled by a 6.8 billion $7.3 billion bridge loan from JP Morgan, a source familiar with the matter told FinanceAsia on Monday.
State-owned ChemChina said it signed an agreement on Sunday to buy an initial 26.2% stake in Pirelli for 1.8 billion from investment vehicle Camfin. The deal gives Pirelli an enterprise value of 8.3 billion, according to the source, and sets in motion a bidding process that could yet provide China, the world's biggest car manufacturer, with control of the world's fifth-biggest tyre manufacturer.
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