Shares in Ing C Olivetti & Co SpA were on the slide yesterday after analysts’ worst fears over its debt were confirmed. As we reported, the interest payments reported by the company indicated a debt level vastly higher than Olivetti had reported as at June 30, and so it proved. Its debt soared to the equivalent of $1.6bn at the end of August, from about $850m at the end of June. The company’s excuses are seasonality of debt level in paying suppliers, on-going restructuring costs and investments into its 41.3%-owned Omnitel cellular telephone consortium. Olivetti also said its sales trend during these two months had continued in line with that seen in the first half, when sales slumped 11% to $2,772m – making it clear that the company is much closer to insolvency than it appeared from its previously reported figures. It is set to meet industry analysts in Milan tomorrow and in London on Friday. The shares dropped 6.48 percent at the opening yesterday, to 525 lire.
