Ailing Olivetti is expected to seek fresh funds in the market

Article Abstract:

Trading in Olivetti stock halts as the market anticipates an issue of stocks and convertible warrants from the largest European PC manufacturer. Analysts anticipate that Olivetti will seek to raise $1.25 billion to offset losses of $1.54 billion incurred in the years 1991-1995. Olivetti will use the capital to shore up its PC division, which produces 22% of the annual $6.3 billion in revenues. Another portion of the money will be used to build up the capital in Omnitel, a cellular telephone company in which Olivetti owns a 36% interest. The forecast stock release markets the second time in as many years that Olivetti has raised money through market releases. The company's losses are caused by European price wars combined with high production costs. In 2nd qtr 1995, Olivetti owns only 4.2% of the PC market, compared with 6% in 1994. Analysts expect the PC division to report losses of $187 million, while the company will have overall losses of $81 million.

Microcomputer industry, Initial public offerings, Company public offering, Company Financial Information

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Olivetti, seeking turnaround, to sell PC unit and other assets

Article Abstract:

Olivetti SpA is selling some of its major assets as part of its effort to return to profitability. The company has reported losses for five consecutive years and its debt has continued to increase. Olivetti raised $1.5 billion in Dec 1995, but its losses have continued and its debt doubled to $1.6 billion in Jul and Aug 1996. The company hopes to raise $655 million to $785 million by selling off some of its divisions, including its unprofitable PC division. The sale will also include the Tecnost service company for specialized computers and a venture-capital company. Several top executives have left the company, and accusations of improprieties in Olivetti's books and management have led to a government investigation. The company has reportedly received an offer of $182 million for its PC division, but has not commented officially. The PC division contributed almost 25% of Olivetti's $2.7 billion in revenue in the first half of 1996.

Divestiture, Divestment, Olivetti Computers Ltd.

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Olivetti sells computer services unit to Wang

Article Abstract:

Olivetti S.p.A. will sell Olsy S.p.A., its computer services unit, to Wang Laboratories in a cash and securities deal valued at more than $395 million. Financial terms call for Olivetti to obtain a 19% stake in Wang in exchange for $68.8 million in cash and 8.7 million shares worth about $250 million, based on the Mar 2, 1998 closing share price. Wang also will issue five million stock appreciation rights certificates, worth a minimum $20 million, pay up to $56 million in the year 2000 and absorb about $28 million of Olsy debt. Olivetti, the struggling Italian electronics giant, is making another apparent move to depart the computer industry in favor of a telecommunications focus. Wang will roughly triple its annual revenue to $3.6 billion through its acquisition of Olsy, which designs and installs computer systems for European banks and public institutions.

Data Processing Services, Data processing and preparation, Computer Service Bureaus, Mergers, acquisitions and divestments, Company acquisition/merger, Computer services industry, Information technology services industry, Wang Laboratories Inc., WANG, Olsy S.p.A.

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