Olivetti has fudged a decision on whether to sell off the remaining shares in its systems and services group, renamed Olsy, after the unit turned in a pre-tax loss of around Lira38 billion in its first quarter of existence. Exact figures are not available.
But Claudio Montagner, chief executive of the spin-off group, predicted profit in the second quarter will amount to Lira20 billion and said that the whole year would yield ?a small pre-tax profit?.
Olivetti?s CEO, Robert Colaninno, a former close associate of disgraced Carlo De Benedetti, who formerly ran the company, claimed that the formation of Olsy had completed the corporate restructuring of the Olivetti Group. Speaking to 700 customers in Lyons yesterday, Colannino said: ?Olsy plays a core role in Olivetti?s strategies and intends to become a global worldwide player in its field of operation.?
Eighty per cent of Olsy revenues came from Europe, he said, with banking taking the lion?s share at 55 per cent. Telcos only accounted for eight per cent of its overall revenues.
Reports in the London 'Financial Times' today suggested that Olivetti was still looking for more investors to bolster up the rump of the business after a cash injection prompted by De Benedetti last year which provoked the crisis which toppled him.
However, De Benedetti is still the largest single shareholder in the Olivetti Group and retains a six per cent share. According to reports, he wants to cut that to five per cent in the near future but the FT said Colaninno had ruled out a deal to link its lucrative telco business, Omnitel, with Italian TV company Mediaset.
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