China National Chemical Corporation Limited (ChemChina) is considering reducing its stake in Pirelli & C. S.p.A. (BIT: PIRC) as part of a strategic review of ChemChina’s overseas investments, according to people familiar with the matter. ChemChina is considering a number of options for its stake, including a block sale on the market that would increase Pirelli’s free float or selling to an investor, they said. Discussions are at an early stage and no final decisions have been made on the size or the timing of the potential sale, said the people, who asked not to be identified because the deliberations are private. ChemChina’s indirect interest in Pirelli is worth about €2.1 billion ($2.4 billion) according to data compiled by Bloomberg. ChemChina controls Pirelli’s biggest investor, Marco Polo International Italy SPA, which owns around a 45% stake in Pirelli. Any transaction would depend on ChemChina getting an attractive price for the shares, the people said. A representative for ChemChina didn’t immediately answer phone calls and a fax seeking comment. “Rumors circulating in the market with regard to the reduction by ChemChina of the stake held in Pirelli through block trades on the market are, in my view, pure speculation and, from a financial point of view, not imaginable,” Pirelli’s Chief Executive Officer, Marco Tronchetti Provera said in a statement. “We’re very happy with ChemChina as a stakeholder, because we have very clear agreements,” Tronchetti said February 25, 2019 in a Bloomberg Television interview. “They’re a financial investor that is really supportive without interfering in the management.”