Carlo de Benedetti quits Olivetti

Carlo de Benedetti last night resigned unexpectedly as the long-standing chairman of Olivetti, after a two-month power struggle with newly appointed managing director Francesco Caio. Mr de Benedetti is being replaced as chairman by Antonio Tesone.

Mr de Benedetti has headed Olivetti since 1978 when his Compagnie Industriale Riunite holding company bought a controlling stake in what was then a struggling typewriter company. He steered Olivetti into the computer, then the multi-media fields.

Pressure has been mounting in the last few months, for senior management changes, particularly from investors who have suffered a 44 per cent fall in the price of their shares this year. Olivetti's shares yesterday dropped another 39 lira to 726 lira.

In a recent statement, former Olivetti board member Giorgio Panattoni summed up Mr Caio's position by calling for an end to "financial alchemy and false information which has given a distorted impression of the company and its market position over the past few years".

Mr de Benedetti's resignation follows huge losses at the group. The company has lost 4.34 trillion lire (pounds 1.8bn) over the past five years, including a 440.2bn lire pre-tax loss in the first six months of this year that was announced yesterday.

"De Benedetti has made a lot of promises to investors about what he would do with the company. Now it looks like it's all gone wrong,'' said Allan Raphael, a fund manager at Arnhold & Bleichroeder International in New York.

In the first six months of the year, Olivetti said its revenues fell to 4.22 trillion lire from 4.74 trillion lire. The company reported an operating loss of 80bn lire.

As part of the resignation, Olivetti is creating a four-person advisory board consisting of Mr Tesone, Mr Caio, Franco Girard, a director, and Rodolfo de Benedetti, son of Mr de Benedetti and chief executive of Industriale Riunite.

The company has raised vast amounts of money in recent months to try to solve its problems, and fund expansion in media. In December, the company raised 2.26 trillion lire of fresh capital to plug losses in its chief loss-maker, its personal computer division, and to finance a move into telecommunications.

Start your day with The Independent, sign up for daily news emails
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own