Olivetti chairman De Benedetti quits; CEO to lead firm out of PC business
Article Abstract:
Olivetti SpA Chmn Carlo De Benedetti is resigning in response to pressures from foreign investors and CEO Francesco Caio. The Italian information and telecommunications company has reported losses for five straight years and has taken restructuring charges for six years in a row. De Benedetti promised shareholders he would turn the company around in 1996 or resign. Caio led a campaign to take the company out of the computer hardware business and the board has now set aside $123.4 million for charges related to this move. The charges resulted in a 440.2 billion lire pretax loss for the first half of 1996, resulting in De Benedetti's resignation. De Benedetti, who owns 14.53 percent of Olivetti's share capital and has led the company since 1978, will be replaced by Antonio Tesone. De Benedetti is facing a four years and six months sentence for contributing to a fraudulent bankruptcy and owes 15 billion lire for an out-of-court settlement in a related civil case.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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Telecommunications firms battle for a stake in the cabling of Italy
Article Abstract:
Italy's Post and Telecommunications Minister Agostino Gambino will introduce a bill to Italian Parliament in Sep 1995 designed to ensure that native telecommunications company Telecom Italia does not sustain its monopoly in the face of intense competition. British Telecommunications PLC, Cable & Wireless PLC, and Ing C Olivetti & Co each hope to gain market share as Italy prepares to open its telecommunications market in anticipation of the European Union's Jan 1, 1998 deadline. Rival companies claim that Telecom Italia possesses an unfair advantage in the market, since it already has an established connection to almost every Italian home and business. The companies would like to see Telecom Italia prevented from laying and maintaining fiber-optic cables within all Italian city limits. The proposed bill would stop short of this, allowing equal access to all companies.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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Probe starts at Olivetti; trading halts
Article Abstract:
Italian authorities are investigating possible financial irregularities by information and telecommunications giant Olivetti. The company announced unexpectedly large pretax losses of $290.9 million and a net debt of 1.26 trillion lire for the six months ending Jun 30, 1996. CEO Francesco Caio met with stock market officials for four hours on Sep 5th to defend the financial report. The regulators have suspended trading of Olivetti stock until an investigation into the situation is completed. Olivetti Chmn Carlo De Benedetti resigned on Tuesday after a confrontation with Caio. The investigation resulted from remarks by Renzo Francesconi, the company's former general manager, who questions the accuracy of Olivetti's accounts. Caio claims the company was able to demonstrate that Francesconi's claims are unfounded.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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