Tire giant Pirelli vows legal action as short seller alleges ‘close relationship’ with Russia

FILE PHOTO: Pirelli logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. Wolfgang Rattay | Reuters Italian tire maker Pirelli has instructed lawyers to take legal action against Grizzly Research after the short seller published a report claiming the firm has a "close relationship" with Russia that "poses a threat to Western national security." Pirelli has instructed lawyers at Gatti Pavesi Bianchi Ludovici Studio Legale Associato to "take action in all jurisdictions against those who have spread this false information" in efforts to "protect all shareholders and the company's good name," the company said in a Thursday statement. It came after a Grizzly Research report claimed to have found a disparity between Pirelli's publicly disclosed earnings and those it claims to have found in Russian filings. Many major tire makers, including Michelin , Continental , Goodyear and Bridgestone , were forced to accept major write-downs as they exited their Russian businesses in the wake of Moscow's full-scale invasion of Ukraine in 2022. Pirelli said at the time it would halt further investment in the country. "General investor perception seems to be that Russia is a rather irrelevant part of Pirelli's current operations," Grizzly said. …