Piedmont rethinks strategy as Olivetti PC attracts investors

Piedmont International has revised the amount it needs to recapitalise Olivetti?s ailing PC unit following claims that it has found more investors.

Last month, Piedmont announced a $40 million recapitalisation plan for the unit, which it acquired in January.

Under its revamped plan, Piedmont has increased that amount to $65 million. It has also reduced a credit line agreement from Merrill Lynch from $100 million to $75 million.

An Olivetti analyst pointed out that the PC unit ? renamed Olivetti PC ? appears to have attracted a number of investors, adding to those announced when Centenary, the owner of Piedmont, declared its intention to buy the PC unit.

?Nobody knows for sure who the investors are other than Olivetti, Centenary and Gian-Mario Rossignolo [chairman of Zanussi Electronics], but if it has reduced the credit line, money must be coming into the company,? said the analyst.

Edward Gottesman, head of Centenary, said the company was looking for a new investor base several months ago, but the delayed recapitalisation plan suggests that investors who originally lined up had pulled out.

Meanwhile, Olivetti has sold a 14.7 per cent stake in Acorn to investment firm Lehman Brothers for #23.2 million.

According to Olivetti, it wanted to divest itself of its remaining 17 per cent stake in the research specialist.