Regulators approve Olivetti's results
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Olivetti, the troubled computer giant, last night said that Italian stock market regulators had approved its half-year results after suspending shares in the group following allegations by a former top executive that its losses had been understated.
The shares will resume trading on Monday. After meeting with the Milan bourse watchdog Consob, Olivetti said that its accounts, showing a first- half loss of L440bn, had met "all legal norms and general accounting principles".
On Wednesday night Olivetti's chief operating officer, Renzo Francesconi, dramatically resigned, alleging that the true extent of the company's losses had been disguised.
This prompted panic in the markets and a sharp fall in the shares of the former Olivetti chairman Carlo De Benedetti's two holding companies, Cofide, and CIR. Mr De Benedetti resigned on Tuesday night.
Olivetti shares were suspended at L749 compared with the L1,000 paid by investors, including a key group of London fund managers at the time of Olivetti's pounds 913m rescue rights issue last December.
Shares in Cofide continued to tumble yesterday, registering a 7 per cent fall in two days, while CIR slid 8 per cent.
Despite the apparent reprieve for Olivetti, it is under intense pressure from shareholders to bring an end to losses that have now reached L4.34,000bn since 1990.
Between 30 and 40 per cent of the company is owned by a group of London- based fund managers, led by ING Barings Asset Management. These funds are seeking a meeting with Olivetti's new management.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments