Feeds

Olivetti in crisis talks

PC vendor in MBO rumour as court keeps out the creditors

  • alert
  • submit to reddit

Internet Security Threat Report 2014

PC vendor Olivetti Computers Worldwide is heading for a management buyout following an application for court protection against creditors. Sources close to the troubled Italian computer group told The Register it is in serious financial strife and has applied for court protection to keep creditors at bay. The proposed MBO is understood to have the support of Olidata, Olivetti’s close rival in Italy. Olivetti Group sold its PC, server and notebook arm to Piedmont International, an industrial holding organisation, in January 1997. Last year Olivetti dragged its way back to profit after six years in the red. However, according to today’s PC Dealer magazine rising debts are believed to have forced the vendor into discussions of a management buyout,. The article stated that an emergency shareholders’ meeting took place last week, where it was decided Olivetti would remain under court protection for up to three months. It added that the PC group was believed to owe Olivetti Group L88 billion. An MBO would lead to management controlling 55 per cent of the company, with Far East partner Chaplet controlling 10 per cent. A five-band consortium will provide L130 billion for the buy-out. It was also understood former holding company Olivetti Group would invest L50 billion and write off the L88 billion debt. A source within the UK distribution channel said: "Olivetti is a stronger brand in parts of Europe than in the UK. As a result, Olivetti doesn’t have the big brand awareness to go up against the likes of IBM and Compaq over here." The source added that there had been speculation of an MBO since the company made the split with its telecomms and printer business. Olivetti was unavailable for comment. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.