Olivetti Group starts seeing black

The Olivetti IT and telecommunications group has announced that it expects to break even by the end of this year, ending a period of financial turmoil which saw the group sell off its PC operation to Piedmont International.

The company has attributed its expected revival to a telecommunications alliance with Mannesmann as well as the international restructure of its computer business. The PC operation Olivetti Computers Worldwide, of which the Olivetti Group still owns a 10 per cent stake, was sold off in January while Mannesmann will buy a 25 per cent stake of Olivetti's telecomms assets by December 15 for L1,100 billion. Mannessmann will acquire a further 24.9 per cent stake next year.

The Groups' UK operation Olsy Systems is also on the verge of a financial injection, following an expected merger with US firm Wang Laboratories. The completion of this deal is not expected until next year.