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China National Chemical Corp (ChemChina) is set to buy into tire-maker Pirelli, with what is currently a €7.1 billion deal. The move would put the 143-year-old Italian company in Chinese ownership, with ChemChina being the majority and controlling shareholder.

ChemChina had planned to offer €15/share to existing Pirelli stock owners, but that number may have to be lifted after a recent rally in the stock’s price. Once the deal concludes though, it is expected that ChemChina will take Pirelli private once the buyout is complete.

The impetus for the buyout is that Pirelli’s knowledge making tires would be a huge asset to ChemChina’s current tire production, not to mention that Pirelli’s free production inventory could be used to make other ChemChina products.

The deal would also give Pirelli a strong footing in the massive Chinese tire market, a significant leg-up in Asia for the Italian brand over its other European competitors.

Lawyers have begun an investigation into the recent rumors that private equity firm Kohlberg Kravis Roberts (KKR) was targeting Harley-Davidson for a stock takeover.

Suspecting that Harley-Davidson executives breached their fiduciary responsibility to Harley-Davidson, Inc., investigators were tipped-off to potential breaches at the Milwaukee company after its stock rose by $2 (+5%) immediately after the rumors were first published in financial reports.