The Italian company Pirelli recently announced, from its branch in Rome, the sale of its cable and Systems 100% to the American investment fund Goldman Sachs. The operation reached € 1.315 million (some US$ 1.600 million) for 52 Pirelli plants throughout the world, including the ones that it has in Argentina (copper cable factory) and Brazil (fibre optics). Goldman Sachs paid € 490 in cash, once it inherits € 690 million in debt and € 135 million that corresponds to loans that were assumed by the division. The buyer will absorb Pirelli’s division through the subsidiary Goldman Sachs Capital Partners.

According to market sources that were consulted by Convergencia, Goldman Sachs bought cheaply. That is why; they believe that the plan would be to restructure its debt to later sell it to one of the large cable producers: Furukawa, present in Brazil, and Corning, that through its participating companies performs in Argentina and in Brazil.

The copper and fibre cable manufacturing business has declined with a strong fall in demand that occurred after the opening to the competition in the main markets throughout the world. The activity is centered in the hands of Corning and Furukawa, after that the major equipment providers have sold their division in the previous years; the exception is Alcatel. Pirelli performed in that sector as a specialized competitor and now, through the sale it does not have presence in the telecommunications market.Nevertheless, the Grupo Italiano still holds its relevance in the first position like controlling shareholder of Grupo Telecom Italia. An excellent fact, concerning the sale of Pirelli’s cable unit is that it has provided first level directors to the directory of Telecom’s Italia Latin American units, it is to say, although it had declined its economic importance, it still has a very strong political hold throughout the region.