Feeds

Update: Olivetti MBO is confirmed

But channel still complains of stock shortages

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
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
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
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.
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.
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.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.