Ing C Olivetti & Co SpA finally sold its loss-making personal computer business on Saturday to newly-formed Piedmont International Ltd. Olivetti is still saying only that the deal with Piedmont, which is controlled by lawyer Edward Gottesman’s Centenary Group, was worth between $159m and $190m, but that is because it is to be at net asset value, and that figure still has to be independently certified. Olivetti will also be entitled to receive as additional purchase price a further payment based on a percentage of the profits – if any – over the next three years. Olivetti will buy a 12% stake in Piedmont and Piedmont will run the Italian side of the business through an Italian subsidiary while its international distribution and marketing activities will be carried out by a Dutch subsidiary. It will use the Olivetti trademark and trade name for its personal computer products under a licensing agreement that will last for 20 years, with an option to renew it for another 20 years, and Olivetti will receive royalties on revenues.
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