The last shall be first


And yet they say that we are always the last… When it comes to the cost of labour, we are unbeatable. Italian managers in fact earn more than any other manager in Europe. Perhaps because they are brighter.

In the telecommunication sector, the difference established by the log of unhappiness (Tronchetti) in relation to the most important managers of the sector is impressive.
Tronchetti has pocketed 8 million Euro in 2005 from Telecom Italia, Arun Sarin from Vodafone, second in the league, got 4.7 million Euro.

It’s not easy to understand how a manager that is so well paid has been abandoned by Banca Intesa and Unicredito who backed him when he was buying Telecom Italia.

The banks have come out with 585 million Euro each, the same amount that they put up in 2001. They haven’t gained a Euro. They’d undoubtedly have done better buying Government Bonds.
The banks have encashed at the purchase price in 2001. That is double the value of the current share price, only thanks to an agreement signed at the time.

An ordinary shareholder, fired with enthusiasm for the arrival of Tronchetti, and buying Telecom shares in 2001, today would find today that the value has halved.
Olimpia, the company controlling Telecom, still has shares at 4.2 Euro, but at the same time the value on the stock market is about 2.4 Euro. I don’t understand how this can be possible. Why don’t the controlling authorities oblige them to revalue the share price?

According to Standard & Poor’s, Telecom Italia’s debt is by now at the limits of human comprehension: 56,700,000,000 Euro. This includes guarantees, insurance obligations, leasing operations and securitisation.
With sublime language, the agency Fitch states: the financial flexibility of Telecom Italia has been reduced by the dividend increments announced 7 and 8 March.”
Instead of reducing the debts they distribute dividends and they pay lavish salaries.
It’s like using a bucket of water to have a shower when the house is burning down.

How is Telecom going to get out of this situation? It seems that the "Mastrolindo" (Berlusconi) is about to arrive to save Tronchetti. They can form a circus double act. In fact the whisper is out that Mediaset and Telecom Italia are about to join forces. This way Tronchetti could throw away his debts and the cleaning wizard would be able to control the Internet.

Posted by Beppe Grillo at 06:22 PM in | Comments (2)
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Love & Hate, said the poet (Catullo)...

"Odi et amo. Quare id faciam, fortasse requiris.
Nescio, sed fieri sentio et excrucior."

I would rather say: healthy contempt.

Posted by: Raffaella Biferale | April 12, 2006 07:26 PM

...To control internet? Lets take this advantage to tell them how much we love them;-)

Posted by: blisco jajo | April 12, 2006 07:08 PM

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