Corporate Europe in the US: Olivetti's acquisition of Underwood fifty years on

Abstract

While Italy's catch-up in the course of the twentieth century has been nothing short of extraordinary, it has failed to produce a large number of global business players. Nonetheless, half a century ago an Italian company concluded what was at the time the largest-ever foreign takeover of a US company. The paper analyses Olivetti's acquisition of Underwood and frames it in the broader picture of the literature on the management and performance of foreign companies in the United States. We provide a historical narrative focused on three main issues: 1) Olivetti's adaptation to the American business system; 2) head office control and subsidiary autonomy; 3) the development of internal knowledge resources. The implications are relevant for business historians and management scholars in general.

Keywords:

• FDI
• acquisition
• adaptation
• technological knowledge
• Olivetti
• Underwood

Acknowledgements

This paper is an abridged and thoroughly revised version of Banca d'Italia working paper series Quaderni di Storia Economica, no. 2, which includes a complete list of acknowledgments. Marcella Spadoni made extensive contributions to the first version of this work. We also thank Franco Amatori, Claire Giordano, Edoardo Mollona, Margrit Müller, Vera Negri Zamagni, Steve Thomsen, three anonymous referees and seminar audiences at Bocconi, Bologna, Macquarie, San Andrés, and Turin universities and the 15th World Economic History Congress for comments on earlier drafts. The opinions expressed in this paper are those of the authors and do not necessarily reflect those of the Bank of Italy and the OECD.

Notes

  1. Barbiellini Amidei and Goldstein (2008) is an exception.

  2. According to Wilkins (2004, pp. 605 and 608–609), in the United States many foreign-owned companies engaged in R&D during the interwar years.

  3. By 1958 Olivetti had four other foreign plants in Scotland, Argentina, Brazil and South Africa.

  4. Archivio Storico Banca d'Italia (from here onwards ASBI), Consorzio sovvenzioni su valori industriali, pratt. No. 51, fasc. 1, pp. 222–226 (5 February 1947).

  5. ‘Invading US office machine market', BusinessWeek, 31 January 1953 and ‘Thinker from Ivrea', Time, 8 February 1954.

  6. Archivio Storico Olivetti (from here onwards ASO), Fondo Direzione Comunicazione Ufficio Stampa (DCUS), Fondo Versamento Tiglio (FVT), Rassegna Stampa Consociate (RSC), fasc. 710, coll. V-C-N, Olivetti – The company story, undated (probably 1954).

  7. Olivetti also aimed at providing the best working conditions in Italy and promoted a broad-based cooperative, later political, movement called Comunità.

  8. In 1956 he was made an honorary member of the American Institute of Planners and deputy chairman of the International Federation for Housing and Town Planning; in this context he became close to David Lilienthal, chairman of the Development and Resources Corporation, previously a founding director of the Tennessee Valley Authority. Adriano Olivetti also maintained close contacts with CIA Director Allen Dulles, Ambassador Clare Boothe Luce, and Henry Kissinger. More concerning Olivetti’s political connections in the US in Barbiellini Amidei et al. (2010, pp. 10, 15, 17 and 20).

  9. ‘Il dramma della Underwood e il finale Olivetti', Mercurio, 15 March 1961, pp. 57–59 (ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3).

 10. The vicissitudes of Underwood must be seen in the broader canvas of the transformation of the global industry. As a maker of manual typewriters, the US declined after WWII, turning from being the world's largest exporter of typewriters to the largest importer.

 11. In 1955 a new plant was proposed but never built (‘Full union shop at Underwood, world's largest typewriter plant’, The Machinist, 30 June 1955).

 12. In this segment, barriers to entry in terms of technological and marketing requirements were significant: it took Royal and Smith Corona Marchant (SCM) four to five years to successfully market a fully electrical office typewriter in the United States (US Federal Trade Commission, 1973, p. 333). See also Cortada (2000).

 13. Archivio Telecom Italia Milano (from here onwards ATIM), Verbali del Consiglio di Amministrazione della Ing. Camillo Olivetti & C. (from here onwards VCDAO), Vol. 4, Verbale della seduta del Comitato Esecutivo del 23.09.1959, p. 164.

 14. ATIM, VCDAO, Vol. 4, Verbale della seduta del Consiglio di Amministrazione del 21.10.1959, pp. 167–168. Gianluigi Gabetti joined Olivetti in 1958 from Banca Commerciale Italiana (BCI), Olivetti's hausbank. Later on Gabetti served as chief executive officer of IFI, the holding company of the Agnelli family, from 1972 to 1993, and as a director of FIAT from 1971 to 1999.

 15. When Gabetti and Financial Director Nerio Nesi expressed their reservations to Adriano Olivetti, he dismissed them out of an intimate conviction in his ability to turn the American company around (respectively Semplici, 2001, p. 104 and Nerio Nesi, personal communication, Turin, 13 May 2009).

 16. ‘Il dramma della Underwood e il finale Olivetti', Mercurio, 15 March 1961, pp. 57–59 (ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3). Olivetti's offer was very generous; just some days before Litton Industries had made a merger proposal valuing Underwood shares at US$16 each.

 17. ‘Olivetti: Elegant and tough', Fortune, September 1960.

 18. ‘Invasion in office machines', BusinessWeek, 10 October 1959.

 19. Rockefeller also helped Gabetti for his appointment as vice-chairman of the Business Machines Association (Gianluigi Gabetti, personal communication, Turin, 30 October 2007). More on Olivetti's access to US financial circles in Barbiellini Amidei et al. (2010, pp. 11–13).

 20. In late November, more than 6.5% of Underwood stock was traded in seven sessions and ‘Wall Street sources had reported that Olivetti was buying appreciable quantities of Underwood common stock’ (‘Executive for Olivetti of Italy is named Underwood president', The New York Times, 25 November 1959).

 21. Promemoria per il Signor Direttore Generale, 25.11.1959, in ASBI, Segreteria Particolare, Delegazione di New York, cart. 1269.

 22. Gianluigi Gabetti, personal communication, Turin, 30 October 2007.

 23. ATIM, VCDAO, Vol. 4, Verbale della seduta del Consiglio di Amministrazione del 21.12.1959, p. 189.

 24. ‘Accordo italo-americano per due complessi industriali’ and ‘All’Olivetti il 35 per cento delle azioni dell’Underwood’, respectively, both 3 October 1959, our translation.

 25. ‘Anche la piccola Ivrea può competere con gli USA', Paese sera, 23 December 1959, ASO, DCUS, PV, fasc. 2281, coll. V-E-D-3-4.

 26. ‘A misura di padrone', Mondo nuovo, 8 November 1959, ASO, DCUS, PV, fasc. 2281, coll. V-E-D-3-4.

 27. ‘New era begins for Underwood', The Machinist, 6 April 1961; and ‘Probe into the world of ideas with Gianluigi Gabetti', Columbia Journal of World Business, September–October 1967, respectively.

 28. ATIM, VCDAO, Vol. 5, Verbale della seduta del Consiglio di Amministrazione del 29.04.1960, pp. 39–40. Olivetti hired as lawyer in the US Oscar Sidney Cox (Ochetto 2009, p. 280), a government career man since 1938, and the technical advisor to the Delegazione tecnica italiana (Deltec), a body set up in Washington by the Italian government in April 1945 to accompany decisions on American support to Italy's reconstruction.

 29. ‘The Olivetti–Underwood move: Milestone in corporate internationalization', Business International, 23 October 1959.

 30. Lettera a Giulio e Renata Einaudi, New York, 22 novembre 1959, in Baranelli (2000).

 31. Underwood had production facilities in Canada, West Germany, England and Italy and assembly lines in Chile and Colombia.

 32. See Barbiellini Amidei et al. (2010, Tables 1 and 3). The data on Olivetti group sales did not include foreign subsidiaries' turnover, but only sales of Olivetti Italy to foreign subsidiaries.

 33. Relazione del Consiglio di Amministrazione dell’Olivetti all’Assemblea Generale degli Azionisti, 25 February 1960, in ASO, coll. V-USG-2-1-2.

 34. Nota interna sull'operazione Olivetti-Underwood, undated, p. 1, in ASO, DCUS, FVT, RSC, fasc. 710, coll. V-C-N.

 35. ATIM, VCDAO, Vol. 4, Verbale della seduta del Consiglio di Amministrazione del 14.04.1959, p. 140.

 36. ASO, DCUS, FVT, RSC, fasc. 710, coll. V-C-N, Relazione interna sull'operazione Olivetti-Underwood, undated, our translation.

 37. Manly Fleischmann had served as Defence Production Administrator for the Korean Conflict, under President Truman. ATIM, VCDAO, Vol. 5, Verbale della seduta del Consiglio di Amministrazione del 09.02.1960, p. 7.

 38. ASO, coll. V-H-18-1, ‘Prospettive e impegni della nostra Società dopo l'accordo con la Underwood’, Notizie Olivetti, October–November 1959, p. 2.

 39. At the time Galassi was 47, Gabetti 36 and Lorenzotti 31.

 40. Relazione sull'esercizio chiuso al 31 dicembre 1959, Olivetti, p. 20, in ASBI, Raccolte diverse – Relazioni e Bilanci (from here onwards RDRB), cart. 1326.

 41. Pero declared that ‘plants and equipments had to be demolished and replaced to a greater extent than expected  …  the serious deficiencies of the inner organization and commercial structure have forced Olivetti's technicians and managers to an enormous reorganizing effort, lengthy and complex because of a smaller ductility of the American staff in comparison to ours’, Archivio Storico di Intesa Sanpaolo (ASI), patrimonio Banca Commerciale Italiana (BCI), Verbali del Comitato della Direzione Centrale (VCD), Vol. 173, Verbale della seduta dello 07.11.1961, p. 125, our translation.

 42. ‘Underwood board approves Olivetti subsidiary purchase’, The Daily American, 15 April 1960, ASO, Fondo Ufficio Stampa (from here onwards FUS).

 43. Alberto Vitale, personal communication, 7 July 2009.

 44. ‘Interview with Mr. Gandi’ in Learned et al. (1965, pp. 242–243).

 45. ‘Why management is missing the boat to foreign markets’, The Machinist, 5 October 1961. Producing a typewriter remained 30% costlier than in Italy (‘When a European firm opens up in US', US News and World Report, 23 July 1962).

 46. See Relazione sull'esercizio chiuso al 31 dicembre 1961, Olivetti, pp. 25–26 and 29, in ASBI, RDRB, cart. 1326.

 47. According to Gabetti, ‘Olivetti's know-how and machinery’ were used to modernize the Hartford plant (‘Olivetti–Underwood, un’operazione rischiosa che si è tramutata in un grosso affare', Espansione, July 1970, p. 55, ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3).

 48. ‘New era begins for Underwood', The Machinist, 6 April 1961.

 49. ‘Statement by Mr. Galassi’ in Learned et al. (1965, p. 255).

 50. ‘Olivetti–Underwood, un'operazione rischiosa che si è tramutata in un grosso affare', Espansione, July 1970, p. 55, ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3, p. 55.

 51. Relazione sull'esercizio chiuso al 31 dicembre 1963, Olivetti, p. 40, in ASBI, RDRB, cart. 1326.

 52. ‘Statement by Mr. Gabetti, Vice President and Treasurer of Underwood’ in Learned et al. (1965, p. 234).

 53. Relazione sull'esercizio chiuso al 31 dicembre 1961, Olivetti, p. 29, in ASBI, RDRB, cart. 1326.

 54.  Relazione interna sulla Olivetti in U.S.A., undated, ASO, DCUS, FVT, RSC, fasc. 710, coll. V-C-N.

 55. ‘Interview with Mr. Galassi’ in Learned et al. (1965, p. 238).

 56. ‘Employees at Underwood win justice through union', The Machinist, 11 May 1961.

 57. ‘Improvements written at Underwood Typewriter', The Machinist, 2 August 1962.

 58. At the 1960 IAM convention, Cronin (Mayor of Hartford in 1951–1953 and 1955–1957) contrasted favourably the behaviour of Olivetti with Remington–Rand's announcement of moving production from Elmira to plants abroad (‘IAM seeks to curb export of US jobs', The Machinist, 22 September 1960).

 59. ‘The 9,000,000 Underwood', The Machinist, 6 September 1962. More concerning Olivetti's relations with US labour unions in Barbiellini Amidei et al. (2010, pp. 20, 31).

 60. ‘Il ministro USA del commercio visita la Underwood', 24 ore, 22 March 1962.

 61. ATIM, VCDAO, Vol. 5, Verbale del Consiglio di Amministrazione del 20.12.1960, p. 71.

 62. ASI, BCI, VCD, Vol. 173, Verbale della seduta del 07.11.1961, p. 125, our translation.

 63. This represented a third of Olivetti global 1963 sales (‘The destiny of dynasties', Time, 17 April 1964). See Barbiellini Amidei et al. (2010, Table 2, Figure 3).

 64. ATIM, VCDAO, Vol. 6, Verbale del Consiglio di Amministrazione del 17.05.1963, pp. 21–25, our translation.

 65. ‘Olivetti's crisis of identity', Fortune, July 1967.

 66. ‘Underwood', Corriere d'informazione, 25 April 1963.

 67. ‘Switching to a black ribbon', BusinessWeek, 24 October 1964.

 68. ‘Olivetti in trouble', The Economist, 28 March 1964. Exports were also hurt by import restrictions in Argentina, traditionally one of Olivetti products' main destination (Relazione sull'esercizio chiuso al 31 dicembre 1964, Olivetti, p. 30, in ASBI, Raccolte diverse – Relazioni e Bilanci, cart. 1326).

 69. See Lettera di Bruno Visentini a Giorgio Bo, Ministro delle Partecipazioni Statali in ASBI, Direttorio-Carli, cart. 36, fasc. 18, 12 April 1964. In this period various members of the Olivetti family borrowed from Italian and Swiss banks, putting up their stocks as collateral, in order to subscribe the new capital issues and maintain their controlling share (ASI, BCI, VCD, Vol. 182, Verbale della seduta del 21.03.1963).

 70. ‘What happened to Underwood', Fortune, May 1971.

 71. ATIM, VCDAO, Vol. 4, Verbale della seduta del Consiglio di Amministrazione del 15.12.1958, pp. 110–111.

 72. ATIM, VCDAO, Vol. 5, Verbale del Consiglio di Amministrazione del 09.02.1960, pp. 8–9. BCI had pushed for listing since 1958, but it was only after the Underwood acquisition that this was accepted (ASI, BCI, VCD, Vol. 155, Verbale della seduta del 28.11.1958; ATIM, VCDAO, Vol. 4, Verbale del Consiglio di Amministrazione del 15.12.1958, p. 111).

 73. See Relazione sull'esercizio chiuso al 31 dicembre 1960, Olivetti, p. 18, in ASBI, RDRB, cart. 1326.

 74. See Memoria del Servizio Vigilanza per la riunione del CICR del 1.3.1961, in ASBI, Vigilanza, Memorie Cicr, cart. 19; Verbale della riunione del CICR del 1.3.1961, in ASBI, Vigilanza, Verbali Cicr, cart. 7a; Memoria del Servizio Vigilanza per la riunione del CICR del 5.10.1961, in ASBI, Vigilanza, Memorie Cicr, cart. 22; Verbale della riunione del CICR del 5.10.1961, in ASBI, Vigilanza, Verbali Cicr, cart 8a.

 75. See Relazione sull'esercizio chiuso al 31 dicembre 1962, Olivetti, pp. 19–20 and 53–58, in ASBI, RDRB, cart. 1326.

 76. See Memoria del Servizio Vigilanza per la riunione del CICR del 16.5.1962 – Olivetti, aumento di capitale and Memoria del Servizio Vigilanza per la riunione del CICR del 16.5.1962 – Olivetti, emissione obbligazionaria, in ASBI, Vigilanza, Memorie Cicr, cart. 24, our translation.

 77. ‘Que se passe-t-il chez Olivetti?', Journal de Genève, 8 April 1964.

 78. Lettera di Bruno Visentini a Giorgio Bo, Ministro delle Partecipazioni Statali, in ASBI, Direttorio-Carli, cart. 36, fasc. 18, 12 April 1964, our translation.

 79. ATIM, VCDAO, Vol. 7, Verbale del Consiglio di Amministrazione del 02.02.1965, p. 15.

 80. ASI, BCI, VCD, Vol. 193, Verbale della seduta del 05.01.1965.

 81. Relazione sull'esercizio chiuso al 31 dicembre 1964, Olivetti, p. 46, in ASBI, RDRB, cart. 1326.

 82. ‘Probe into the world of ideas with Gianluigi Gabetti', Columbia Journal of World Business, September–October 1967.

 83. ASO, DCUS, FVT, RSC, fasc. 710, coll. V-C-N, A. Barrett, E.P. Learned, Rapporto sulla Olivetti Underwood Corporation, p. 19.

 84. ‘Olivetti hits the keys of revival', BusinessWeek, 20 November 1965.

 85. Relazione sull'esercizio chiuso al 31 dicembre 1964, Olivetti, p. 30, in ASBI, RDRB, cart. 1326.

 86. Notizie sulla Ing. C. Olivetti & C., Ivrea, luglio 1964, p. XII, in ASBI, RDRB, cart. 1326.

 87. Gianluigi Gabetti, personal communication, Turin, 30 October 2007.

 88. ‘Olivetti: A choice of strategies', The Economist, 27 April 1968.

 89. ‘Olivetti–Underwood, un'operazione rischiosa che si è tramutata in un grosso affare', Espansione, July 1970, p. 55, ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3, p. 53; ‘New school try', Time, 24 November 1967.

 90. See ‘Olivetti–Underwood, Un'operazione rischiosa che si è tramutata in un grosso affare', Espansione, July 1970, p. 55, ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3, p. 53; Relazione sull'esercizio chiuso al 31 dicembre 1965, Olivetti, pp. 19 and 28, in ASBI, RDRB, cart. 1326.

 91. ‘Olivetti Underwood unveils desk computer for world market', Trade with Italy, November 1965.

 92. In 1968 Hewlett Packard introduced a competing calculator (the 9100A); Olivetti was later awarded damages for patent infringements.

 93. ‘Probe into the world of ideas with Gianluigi Gabetti', Columbia Journal of World Business, September–October 1967; and Gianluigi Gabetti, personal communication, Turin, 30 October 2007.

 94. See Programma schematico di lavoro a conclusione degli incontri negli Stati Uniti ed in Europa nei mesi di luglio ed agosto, undated, probably 1965, in ASO, Fondo Sergio Lupo (FSL), fald. 50, coll. V-E-E-1-1.

 95. Lettera di M. Cornaglia a S. Lupo, 29–12–1965, Ivrea, in ASO, FSL, fald. 50, coll. V-E-E-1-1.

 96. Relazione sull'esercizio chiuso al 31 dicembre 1966, Olivetti, in ASBI, RDRB, cart. 1326, our translation.

 97. ATIM, VCDAO, Vol. VII, Verbale della seduta del Consiglio di Amministrazione del 29.10.1968, p. 170.

 98. While most R&D was carried out in Italy, transatlantic coordination permitted to maintain ‘a direct link with the advanced technological experiences’ in the US; research activity was performed ‘almost exclusively in Italy’, in the US there was ‘a small nucleus, but with highly specialized activities' (Relazione sull'esercizio chiuso al 31 dicembre 1967, Olivetti, p. 26; Relazione sull'esercizio chiuso al 31 dicembre 1970, Olivetti, p. 35, in ASBI, RDRB, cart. 1326–1327, our translation).

 99. ‘Olivetti–Underwood, Un'operazione rischiosa che si è tramutata in un grosso affare', Espansione, July 1970, p. 55, ASO, DCUS, PV, fasc. 1532, coll. V-E-D-2-3.

100. For specific examples of cross-fertilization between staff in Scarmagno and Harrisburg, see Trip report della visita compiuta allo stabilimento di Harrisburg (USA) nei giorni 26–30 gennaio 1970, 6 February 1970, in ASO, FOB, fasc. 476, coll. V-E-K-2-7.

101. Programma schematico di lavoro a conclusione degli incontri negli Stati Uniti ed in Europa nei mesi di luglio ed agosto, undated, probably 1965, in ASO, FSL, fald. 50, coll. V-E-E-1-1.

102. In late 1966, nine Olivetti engineers and technicians visited Hartford and other plants, returning with ideas to apply packaging techniques used there (ASO, DCUS, Tecnologie di produzione, fald. 22, fasc. 35, coll. V-E-B-2-2, Visita negli USA dal 30.10.1966 al 12.11.1966; ibid., Relazione sulla visita all'Underwood Corp. del 07.11.1966).

103. ‘Probe into the world of ideas with Gianluigi Gabetti', Columbia Journal of World Business, September–October 1967.

104. ‘Olivettis' return', The Economist, 25 February 1967.

105. ‘$ 2,358,000 severance pay, benefits help cushion Underwood shutdown', The Machinist, 14 November 1968.

106. ‘Olivetti building's facelift sign of cultural destruction', The Patriot News, 30 August 1997.

107. Renzo Zorzi, head of the Development & Advertising Office, wished to make the Harrisburg plant a tool to mark a new Olivetti beginning in the US (ASO, FOB, fasc. 476, coll. V-E-K-2-7, Relazione di Renzo Zorzi a Bruno Jarach e Roberto Olivetti del 02.03.1967). While the unemployment rate in Harrisburg was high, Olivetti decided to offer relatively good salaries and fringe benefits in order to fight unionization (ASO, FOB, fasc. 476, coll. V-E-K-2-7, Lettera di Ottorino Beltrami a Romano Gabriele del 16.11.1972).

108. See ATIM, VCDAO, Vol. VI, Verbale della seduta del Consiglio di Amministrazione del 15.07.1964, p. 152; Relazione sull'esercizio chiuso al 31 dicembre 1968, Olivetti, p. 14, in ASBI, RDRB, cart. 1326.

109. As part of the same programme, production of some Hartford products was moved to Glasgow in 1968.

110. ASO, DCUS, PV, fasc. 1521, coll. V-E-D-2-3, Rapporto dell'ing. Vitale dell'OCA al dott. Minardi, 4 October 1971.

111. Discorso di Gianluigi Gabetti in occasione dell'inaugurazione dello stabilimento di Tarrytown, 26 November 1968, in ASO, DCUS, PV, fasc. 1521, coll. V-E-D-2-3.

112. Relazione sull'esercizio chiuso al 31 dicembre 1971, Olivetti, in ASBI, RDRB, cart. 1327.

113. Lettera di Gribaudo a Bellisario, Beltrami, Ricciardi del 3 giugno 1974, in ASO, FOB, fasc. 476, coll. V-E-K-2-7.

114. Informazioni sul Gruppo Olivetti e sulla Ing. C. Olivetti & C., Ivrea, giugno 1972, pp. 5 and 6, in ASBI, RDRB, cart. 1326.

115. Relazione sull'esercizio chiuso al 31 dicembre 1970, Olivetti, p. 27, in ASBI, RDRB, cart. 1327.

116. Relazione sull'esercizio chiuso al 31 dicembre 1978, Olivetti, pp. 17–18 and 28, in ASBI, RDRB, cart. 1327. As for Olivetti's delay in this technological transition, it is important to recall that internal demand for computer industry products started to increase significantly in Italy only in the mid-1970s.

117. ‘Olivetti's second try at the computer market', BusinessWeek, 26 October 1974.

118. State action to support research carried out by private firms only began at the end of the 1960s (Law 1076 of 1968, Fondo IMI- Ricerca Applicata).

119. Relazione sull'esercizio chiuso al 31 dicembre 1971, Olivetti, p. 13, in ASBI, RDRB, cart. 1327.

120. See Barbiellini Amidei et al. (2010, Table 4). In the 1970s, as the end of the Bretton Woods system made corporate financial management more challenging, Olivetti International became the ‘group's financial lung’, entitled of pursuing the group's global financial strategy and able to transfer funds among affiliates.

121. The TV commercial showed a secretary as a vacuous pin-up girl who finds that she can attract men by becoming ‘an Olivetti girl’ (‘Rebel secretaries', Time, 20 March 1972).

122. See Relazione sull'esercizio chiuso al 31 dicembre 1974, Olivetti, p. 36; Relazione sull'esercizio chiuso al 31 dicembre 1977, Olivetti, p. 14, in ASBI, RDRB, cart. 1327–1328.

123. Relazione sull'esercizio chiuso al 31 dicembre 1978, Olivetti, pp. 15–16.

124. ‘When a building goes piggyback', BusinessWeek, 27 November 1978 and ‘Olivetti: Its growth in Europe will rely on US technology', BusinessWeek, 12 February 1979.

125. See Relazione sull'esercizio chiuso al 31 dicembre 1979, Olivetti, p. 10, in ASBI, RDRB, cart. 1328.

126. Bellisario joined Olivetti's computer division in 1960, later moving to GE and coming back in Olivetti in 1972, with the new managing director Ottorino Beltrami, to become head of the information technology division in 1978.

127. Lettera di Marisa Bellisario a Ottorino Beltrami del 20 ottobre 1977, in ASO, FOB, fasc. 476, coll. V-E-K-2-7; and She has three years to turn Olivetti America around, Fortune, 22 October 1979.

128. Lettera di Guido Lorenzotti a Ottorino Beltrami del 11 novembre 1976, in ASO, FOB, fasc. 476, coll. V-E-K-2-7.

129. See Relazione sull'esercizio chiuso al 31 dicembre 1978, Olivetti, p. 10; Relazione sull'esercizio chiuso al 31 dicembre 1983, Olivetti, pp. 90–91, in ASBI, RDRB, cart. 1328.

130. ‘Advanced Technology Center: Una punta di diamante americana per la Olivetti', Informatica oggi, n. 2, 1983, p. 70, in ASO, DCUS, TV, Rassegna stampa, fasc. 863, our translation.

131. Possibly the most famous former Olivetti man in Silicon Valley is Federico Faggin, who designed his first Olivetti computer at the age of 19. In 1970, Faggin joined Intel, where he co-developed the world's first microprocessor (Intel 4004). In 1996, Faggin was inducted in the National Inventors Hall of Fame.

132. ‘Intervista a Sandro Graciotti’ in Novara et al. (2005).

133. Mazzola founded Crescendo Communications (that developed the encoding scheme used for Fast Internet) in 1990 and then sold it to Cisco Systems. De Luca became CEO of Logitech in 1998.

134. This fund was managed by Elserino Piol, a long-time Olivetti veteran.

135. For instance, the TES 701 text-editing system was developed from a specified design and supply contract with a small Colorado computer company (‘She has three years to turn Olivetti America around', Fortune, 22 October 1979).

136. ‘Intervista a Gastone Garziera’ in Novara et al. 2005.

137. The computer moves in, 3 January 1983.

138. OCA brought 1081 employees into the new company. See Relazione sull'esercizio chiuso al 31 dicembre 1982, Olivetti, p. 5 and 6, in ASBI, Banca d'Italia, RDRB, cart. 1328.

139. Kim Crompton, News Editor, Journal of Business (Spokane), personal communication, 28 September 2007.

140. ‘Olivetti: A choice of strategies', The Economist, 27 April 1968.

141. ‘Language barriers are another problem. Most Olivetti officials know some English, but few are fluent. […] Yet another problem: the need to keep stockholders informed. […] In Italy, corporate operations are closely guarded secrets. Little information is made public. For example, there are no quarterly reports to stockholders. “It's just one more adaptation we had to make”, says one official’ (‘When a European firm opens up in US', US News and World Report, 23 July 1962).

142. ‘A confident capitalist redesigns Olivetti’, Fortune, 22 October 1979.

143. In De Benedetti's words, ‘we must be an American company in the US. You can remain Italian in America and be successful only if you are Gucci.’ See ‘She has three years to turn Olivetti America around', Fortune, 22 October 1979.