Shares in Ing C Olivetti & Co SpA rose strongly yesterday, up 6.5% at 482 lire, while all about were falling in Milan, on the back of completion of the deal whereby it sells part of its stake in Omnitel Pronto Italia SpA to Mannesmann AG. The German gets another 5.8% and Olivetti’s stake falls to 35.5% from 41.3%. Omnitel Pronto Italia is held 30% by Pronto Italia, in which Mannesmann is a shareholder, and 70% by Omnitel Sistemi Radiocellulari SpA, where Olivetti has reduced its stake to 50.74% as a result of the deal. In return, it gets about $200m to bolster its flagging balance sheet. Mannesmann, which already held 5.9% of Omnitel Pronto Italia through Pronto Italia, has raised its stake to more than 11%, is now in both consortia, and can appoint a representative to Omnitel Sistemi’s board. Olivetti also sold some option rights it owned in Pronto Italia for $33m so Mannesmann also has the option to raise its stake to about 14%. AirTouch Communications Inc also raised its stake in Omnitel-Pronto Italia, to 15.5% from 11.7% and acquired an option to add another 6.2%, also by October 1999, which would bring its indirect ownership interest in Omnitel-Pronto to 21.7%. Airtouch acquired the additional interests from shareholders, Banca di Roma and two smaller partners. Despite the firmer tone in the share price, concerns remain over whether Olivetti will sell any more of the cellular operator, and also over the intentions of former chairman and still its largest shareholder, Carlo de Benedetti. De Benedetti appears to be in destructive mood after being unseated, and he told Le Monde that his holding company is in principle a seller of its 15% stake in Olivetti and that he will definitely invest no more money in it.
