Newswire

Pirelli says dissolves shareholder pact that locks up capital

MILAN, Oct 31 (Reuters) - Italian tyre maker Pirelli said on Thursday it dissolved a shareholder pact protecting it from takeovers ahead of its expiration in 2015.

Pirelli is the second Italian company after publisher RCS Mediagroup to abolish a shareholder agreement this month, in a move that analysts have said could help boost the value of its shares.

Shareholder agreements have been widely used in Italy for decades, allowing small groups of people to wield control over some of the country's most influential firms.

But they are now falling from grace as companies struggle to improve their share prices in Italy's worst recession in 60 years. ž (Reporting by Jennifer Clark)