Olivetti obtains pact to shed PC unit; Centenary, led by American, creates firm to acquire loss-ridden operations

Article Abstract:

Centenary Corp has formed Piedmont International SA to acquire Olivetti SpA's PC unit, which has reported a net yearly debt of $1.85 billion as of Nov 1996. U.S. financier Edward Gottesman is heading the group of unspecified investors set to make Piedmont a thriving business. Olivetti is predicted to collect between $159.3 million and $191.2 million for the sale, which is slated to close by the end of Feb 1997. While final sales prices and conditions are negotiated, Gottesman and the investors are developing Piedmont's management and shareholding structures. Piedmont will conduct PC production business in Italy and foreign marketing and distribution operations in the Netherlands. The preliminary agreement contains provisions for Olivetti to market Piedmont's PCs within its Olivetti Systems and Services unit. A trademark-licensing agreement has also been signed authorizing Piedmont to use Olivetti's brand name for 20 years with Piedmont paying royalties.

Computers & Auxiliary Equip, Mergers, acquisitions and divestments, Company acquisition/merger, Licensing agreements, Company licensing agreement, Olivetti Synthesis S.p.A., Centenary, Piedmont International SA

---

Olivetti to lay off 5,000 and increase capital

Article Abstract:

Ing. C. Olivetti & Co announces restructuring plans that include 5,000 employee layoffs and a $1.36 billion increase in capital expenditures, designed to bolster its declining position in the PC market. Officials report that 1,800 of the layoffs will come from the company's PC division, representing 41% of its current staff, and will be completed by Jun 1996. Olivetti's PC division is the company's only unprofitable branch, and some analysts question the company's ultimate ability to compete successfully with Compaq and IBM. Olivetti's capital increase is intended to shore up the company's $1.24 billion debt, invest in new businesses and cover restructuring expenses. A succession of management miscalculations explain Olivetti's losses in the first half of 1995, despite a 15% increase in sales compared to the same period in 1994.

Personal & Home Computers, Capital Transfers to Corps & Public Ent, Planning, Human resource management, Information management, Computer games, Company restructuring/company reorganization, Reorganization and restructuring, Layoffs, Layoff, Company Operations, Company system downsizing

---

Italy's Olivetti plans big increase in capital, indicates wider loss

Article Abstract:

Ing. Olivetti and C. SpA plans a capital increase of 903 billion lire, or $561.2 million US, but industry analysts say they do not understand why investors would subscribe to the capital increase in the midst of a computer price war in Europe. Trading of the company's stock is suspended, but analysts expect a plunge of as much as 40 percent when trading resumes, perhaps on Mar 16, 1993. Olivetti also announces a preliminary consolidated net loss of 230 billion lire in 1992, compared to a 28 billion lire loss in 1991. Preliminary 1992 revenue fell to 8.02 trillion lire from 8.6 trillion lire in 1991. Compagnie Industriale Riunite SpA, Olivetti's parent company, and Cofide SpA, Compagnie Industriale Riunite's holding company, will completely take up their nearly two-fifths share of the capital increase.

Finance, Losses, Annual Report

Similar abstracts:

• Abstracts: Unisys to sell Timeplex unit for $207 million; Swiss, South African firms join as buyers; move to ease burden of debt
• Abstracts: Equity price reaction to the pronouncements related to accounting for income taxes. Predicting corporate takeovers
• Abstracts: Organizations: new concepts for new forms. Causes of failure in network organizations. Characteristics of managerial careers in the 21st century
• Abstracts: Micron to quit Sematech Group, cites differences. Advanced Micro, Hewlett plan collaboration. LSI withdraws from Sematech research group
• Abstracts: Programs brighten day for PC users without Windows. Quattro Pro creates good spreadsheet at bargain price. More doors open for Windows users who run spreadsheets

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.