Feeds

Update: Olivetti MBO is confirmed

But channel still complains of stock shortages

  • alert
  • submit to reddit

Seven Steps to Software Security

Shareholders in Italian vendor Olivetti Computers Worldwide (OCW) have approved the company's proposed MBO. But UK distributors believe this is just the first step, and that the company's main difficulty lies in getting the kit and confidence back into the channel. Last week, a proposal was put to shareholders that an MBO would help write off the company's L88 billion debt to the Olivetti group. See earlier story. The buyout will reduce the share of Piedmont International, which bought Olivetti in 1997, from 80 per cent to 35 per cent. A meeting was held last night, in Turin, to thrash out the details of the MBO. But even if it goes ahead smoothly, the MBO is unlikely to bring Olivetti's woes to a speedy end. Some distributors are claiming that they are completely out of many Olivetti lines. The channel is already complaining about the level of disruption to Olivetti stock. One industry source said: "There are ridiculous shortages of Olivetti kit in the channel. The lead times from Italy go between two weeks and two months. There are few spares available. It's a very poor situation." Another agreed, saying: "It's only really starting to bite now, but we're running out of product. Olivetti is putting a positive slant on this MBO, but it needs to improve its supply - and to do it quickly." Sources also felt disquiet about Olivetti losing market share due to poor product availability. Ian Davidson, Olivetti UK PC division marketing manager, admitted the company's failings, but stressed the MBO was positive news. "This will give us the much needed cashflow. The cash constraint we have been under, caused by debts to the Olivetti group, has caused these product shortages." Davidson said he expected the amount of kit in the channel to be back to capacity by the end of March. He added: "In the short term, we will have lost market share. But in the last year, we have started our reseller programme, Olivetti Pro, and this has brought us into direct contact with the channel. I see the current situation as a short-term blip, and we should recover the lost ground in Q2." ®

Boost IT visibility and business value

More from The Register

next story
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.