The Nation - News from July 16, 1989

American Telephone & Telegraph Co. said it will swap its 22% stake in Italian computer maker Olivetti for a large holding in Carlo de Benedetti’s main industrial holding company. The announcement ends speculation that AT&T; would sell its Olivetti stake because of differences that emerged a year ago over the firms’ industrial alliance formed in December, 1983. Under the new agreement, AT&T; is selling to De Benedetti’s Italian holding firm Compagnie Industriali Riunite 100 million Olivetti shares at a price of $8.31 each, for a total of $832 million. Then, AT&T; will buy 182.5 million CIR shares, also to total $832 million.