AT&T Co and Ing C Olivetti & Co SpA announced only the first step in the realignment of their relationship on Saturday, when AT&T revealed that it was selling its 22.35% stake in Olivetti and investing the proceeds in an 18% stake in Carlo De Benedetti’s Compania Industriale Riunite pA diversified holding company. The effect nearly doubles Compania Industriale’s Olivetti stake to about 40% without costing the company any money. De Benedetti denied that he had any intention of bringing in another European computer company as an investor in Olivetti, although he was open to commercial ventures. Although AT&T has made a substantial – paper – profit on its investment in Olivetti, the latter is clearly the greater beneficiary from the aborted alliance, having gained new cash at a crucial time in its development, got its name closely linked with that of AT&T in the Unix world where it sees its future, and gaining the economies of scale in manufacturing from its supply agreement with AT&T to enable it to become the leading European maker of personal computers – and AT&T says it will continue to buy some of its requirement from Olivetti.AT&T is now expected to look for another European partner to further its computer industry interest.Both de Benedetti companies plan capital increases, Olivetti raising $875m in a one-for-10 rights issue complemented by a new issue of bonds, and Compania Industriale raising just over $1,000m, also with a rights issue to shareholders and a bond issue.
