Carlo de Benedetti quits Olivetti
Wednesday 04 September 1996
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.
As Voltaire once said, “Ice cream is exquisite. What a pity it isn’t illegal”
- 1 Mother fed her daughter tapeworms to make her skinny for beauty pageant
- 2 Crystal Palace next manager latest: Palace consider Ally McCoist - EXCLUSIVE
- 3 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 4 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
- 5 Tim Sherwood column: 'It started as a three-horse race but turned into the Grand National'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£50000 - £60000 per annum: Harrington Starr: Network Engineer - CCNP, Hedge Fu...
£60000 - £70000 per annum: Harrington Starr: Senior Network Engineer-CCIE, Mul...
£30000 - £50000 per annum: Harrington Starr: Network Infrastructure Engineer (...
£35000 - £45000 per annum: Harrington Starr: Network Engineer (CCNP, BGP, Mult...