Olivetti breaks away from PC past to future as owner of Telecom Italia

Article Abstract:

The new board of Olivetti SpA after its battle to acquire Telecom Italia SpA reflects the group of shareholders closely tied to Chief Executive Roberto Colaninno. Mr. Colaninno will soon add a number of additional partners to give him greater control of the company, which he and his associates now control with a small 15% stake, before he takes over at Telecom on June 28. Italian bank Monte dei Paschi di Siena plans to take a 1.5% stake in Olivetti, while Mediobanca SpA will also buy a major stake. Other firms considering acquiring similar stakes include Assicurazioni Generali SpA, Banca Commerciale Italiana SpA and Fininvest SpA. Mr. Colaninno's goal is to assemble a shareholder group representing 30% of Olivetti's capital. One clear sign of Olivetti's break with its past is that Carlo De Benedetti resigned as honorary chairman of the group he controlled for almost 20 years. However, Mr. De Benedetti's son, Marco, is to be named chief executive of Telecom Italia Mobile SpA, the largest mobile-phone operator in Europe, which is 60%-owned by Telecom Italia. Mr. Colaninno is looking to assemble a group of both insiders and outsiders that can largely restructure a former state monopoly and pay off the almost $2.65 billion debt Olivetti took on to finance the acquisition.

Italy, Radiotelephone communications, Cellular and Other Wireless Telecommunications, Computer and Office Equipment, Office & Computing Machines, Mobile Radio Services, Analysis, Management, Office equipment, Officials and employees, Office equipment and supplies industry, Office equipment industry, Cellular telephone services industry, Cellular telephone services, Acquisitions and mergers, Wireless communications services, Appointments, resignations and dismissals, Telecom Italia S.p.A., Olivetti S.p.A., Telecom Italia Mobile S.p.A., Colaninno, Roberto, de Benedetti, Carlo, de Benedetti, Marco

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AT&T to pay $5 billion for IBM network; deal jump-starts effort to build infrastructure for global data traffic

Article Abstract:

AT&T announced the acquisition of IBM's global network for $5 billion in cash. The agreement, which contains several side agreements, will allow AT&T to compete with MCI Worldcom as an international Internet-based network player. Many analysts had expected AT&T to pay $3 billion to $4 billion, but said AT&T will reap significant benefits from the global network. Revenue from the IBM network is expected to produce $2.5 billion during AT&T's first year of operations. AT&T has spent heavily since 1997 on acquisitions to catch up in the global data communications race and depart from its long-distance tradition. Conditions of the alliance include a dual agreement to avoid competition as well as purchase $9 billion of services from one another into the next decade. The deal also calls for transferring around 5,000 IBM network employees to AT&T, plus the possible shift of more than 2,000 AT&T employees to IBM.

United States, On-Line Information Services, Videotex & Teletext, Facilities & equipment, Telegraph & other communications, Services, Internet, Internet services, AT&T Corp., T, International Business Machines Corp., IBM, Company services, Data communications, Telecommunications transmission technologies

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Canada's Telus to buy Clearnet for $3.1 billion

Article Abstract:

Canada's Telus Corp. is to buy Clearnet Communications Inc., also of Canada, for stock and cash totaling 4.6 billion Canadian dollars. Telus would also take on Clearnet debt of $2 billion Canadian dollars. The acquisition marks one of the biggest in Canada's telecommunications industry. Telus hopes to transform itself from a mostly regional telephone company to a national one and to compete with Canada's telecommunications leader BCE Inc.

Canada, COMMUNICATION, Communications, Broadcasting and Telecommunications, Telus Corp. (Vancouver, British Columbia), TELUS Mobility

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