Czech business leaders Michal Strnad and Pavel Tykac are interested in buying part of the stake held by China's Sinochem SSE:600500 in Italian tyremaker Pirelli MIL:PIRC, Italian daily Corriere della Sera reported on Friday.

The two investors have expressed interest in buying between 10% and 20% of Pirelli's share capital from Sinochem, the newspaper reported, citing sources.

  • Beijing-controlled Sinochem is Pirelli's largest shareholder with a 34.1% stake. Italian investor Camfin, the investment vehicle of longstanding Pirelli executive Marco Tronchetti Provera, owns just under 27%.

  • Talks are at an early stage and differences over valuation remain a key hurdle between the two entrepreneurs and the Chinese group, the report added.

  • Czech ​billionaire Tykac owns Sev.en ​GI, which holds assets ​in ⁠the United States, Europe and Australia, mainly in ⁠mining, ​power production, coal ​mining and steel production.

  • Strnad is an investor in ammunition and arms producer CSG EURONEXT:CSG.

  • Rome earlier this year imposed curbs on Sinochem, using so-called "golden powers" aimed at protecting companies considered of strategic importance amid a governance dispute at the company.

  • Pirelli and Camfin say Sinochem's ownership position complicates Pirelli's expansion plans in the United States, as Washington tightens restrictions on Chinese technology in the automotive sector.

  • Pirelli declined to comment.

  • It was not possible to obtain an immediate comment from Sinochem, Se.ven GI or CSG.