Olivetti went some way towards appeasing bondholders yesterday (Thursday) by unveiling the terms of the compensation package it has been promising since the announcement last month of its planned merger with Tecnost. The announcement confounded expectations of a merger between Tecnost and Telecom Italia, which was Olivetti's initial intention after acquiring the latter, and prompted Moody's to downgrade Tecnost's bonds from A3 to Baa2, and S&P to place its BBB+ rating on negative CreditWatch.
July 14, 2000