Carlo De Benedetti
Encyclopedia
Carlo De Benedetti is an Italian
industrialist, engineer
and publisher. He is both an Italian and naturalized Swiss citizen.
He was awarded the Order of Merit for Labour
by the Italian state in 1983, the Medaglia d'oro ai benemeriti della cultura e dell'arte (Gold medal of culture and art) and the Legion d'Honneur
in 1987.
, the De Benedetti family fled to Switzerland
. After Carlo returned to Italy, he received a degree in electrical engineering
from the Polytechnic University of Turin
and in 1959 began to work in his father's manufacturing business, the Compagnia Italiana Tubi Metallici Flessibili. He helped improve company profits consistently and in 1972 acquired the Gilardini company, of which he became president and CEO until 1976.
Carlo De Benedetti left Italy to return to Switzerland in 1975, owing to possible terrorist threats during the Anni di Piombo period of Italian domestic terrorism.
For a brief period, from May 4 to August 25, 1976, he was appointed CEO
of FIAT
. His resignation from Fiat was caused, according to De Benedetti, by his decision to lay off 65,000 workers, which was refused by Fiat head Gianni Agnelli
; other sources say that he was suspected of trying to build up a takeover of power within the company, with the backing Swiss financial groups.
In November 1976, De Benedetti acquired the CIR Group
, thereby also obtaining control of the national newspaper La Repubblica
and the newsmagazine L'Espresso
. In 1978 he became CEO
of the Italian manufacturer Olivetti
, where he remained until his resignation in 1996. As president of Olivetti, since 1983, he quickly and ruthlessly reorganized the company, switching its focus from mechanical typewriters to computers.
In the 1980s, along with other leading business figures, he founded the European Round Table of Industrialists
, of which he was vicepresident until 2004. In 1985 he became a member of the European Advisory Committee of the New York Stock Exchange
.
In 1995 De Benedetti founded the telecommunications companies Omnitel
and Infostrada.
In 1997 he created the Gruppo Editoriale L'Espresso
(L'Espresso Editorial Group), by merging the L'Espresso
and La Repubblica
editorial groups. Carlo Caracciolo
was appointed president of the group. However, Carlo De Benedetti assumed the presidency in 2006, after the death of Caracciolo. On January 26, 2009 at a press conference, De Benedetti announced his decision to retire from all his executive positions in the CIR group, keeping only - at the request of the Board of Directors - the position of Chairman of the Espresso Group. All the executive positions in the CIR group were given to the current Chief Executive, Rodolfo De Benedetti
.
, then president of the state-owned IRI
(Institute for Industrial Reconstruction), tried to sell the IRI share in SME (a former state-owned agency later turned food industry conglomerate) to De Benedetti, who was then president of Buitoni (a food industry belonging to the CIR group), for 497 billion Italian lira
. Other offers for SME included most notably one for a joint venture
with Fininvest
, a media group owned by entrepreuner and former Italian prime minister Silvio Berlusconi
. The sale to De Benedetti was later blocked by the then Italian prime minister Bettino Craxi
, and SME remained state-owned until almost 10 years later.
De Benedetti brought IRI to court in an attempt to appeal the block, but the court, presided over by judge Filippo Verde, denied his case in 1986. In 1995, Silvio Berlusconi
, Cesare Previti
and Attilio Pacifico were accused of having bribed Filippo Verde and Renato Squillante to fix the trial against De Benedetti. Berlusconi was later acquitted.
According to Der Spiegel
on June 7, 2011, Berlusconi was found guilty of bribery and ordered to pay 560 mill. Euro to CIR.
(Clean Hands) political-corruption investigations, Carlo De Benedetti was arrested and admitted to having paid a 10 billion Italian lira bribe to government parties, to obtain a purchase order from the Italian Postal Service
for obsolete teleprinter
s and computers. In May of that year, he was officially put under investigation, but De Benedetti never went to trial for this episode, having exceeded the statute of limitations
.
in 1981, by acquiring 2% of the capital, but left after only 61 days. In April 1992, Carlo De Benedetti and 32 other people were convicted of fraud by a Milan court in connection with the collapse of the bank. Benedetti was sentenced to six years and four months in prison, but the sentence was overturned in April 1998, by the Court of Cassation
.
, and his L'Espresso editorial group
currently publishes the main centre-left-leaning Italian newspaper (La Repubblica
) and newsmagazine (L'Espresso
). He has been called a "foe of Berlusconi" by the Wall Street Journal.
In October 2005, De Benedetti reportedly offered Benjamin Netanyahu
, then the Finance Minister of Israel, the position of Italian finance minister, which Netanyahu declined. De Benedetti later said it had been a joke. Ehud Gol, the Israeli ambassador to Italy, had introduced the men.
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
industrialist, engineer
Engineer
An engineer is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics and ingenuity to develop solutions for technical problems. Engineers design materials, structures, machines and systems while considering the limitations imposed by practicality,...
and publisher. He is both an Italian and naturalized Swiss citizen.
He was awarded the Order of Merit for Labour
Order of Merit for Labour
The Order of Merit for Labour was founded as national order of chivalry in 1923 by King Vittorio Emanuele III of Italy; it is awarded to those "who have been singularly meritorious" in agriculture, industry and commerce, crafts, lending and insurance. It is a continuation of the earlier Ordine al...
by the Italian state in 1983, the Medaglia d'oro ai benemeriti della cultura e dell'arte (Gold medal of culture and art) and the Legion d'Honneur
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...
in 1987.
Life and career
Born into a wealthy Jewish family, on 14 November 1934, Carlo De Benedetti is the brother of Italian Senator Franco Debenedetti, whose surname is different owing to a spelling error. In 1943, during the World War IIWorld War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the De Benedetti family fled to Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
. After Carlo returned to Italy, he received a degree in electrical engineering
Electrical engineering
Electrical engineering is a field of engineering that generally deals with the study and application of electricity, electronics and electromagnetism. The field first became an identifiable occupation in the late nineteenth century after commercialization of the electric telegraph and electrical...
from the Polytechnic University of Turin
Polytechnic University of Turin
The Polytechnic University of Turin is an engineering university based in Turin, northern Italy. Established in 1859, Politecnico di Torino is Italy’s oldest Technical University. In 2011 it was ranked as the best engineering university in Italy in the Academic Ranking of World Universities.It is...
and in 1959 began to work in his father's manufacturing business, the Compagnia Italiana Tubi Metallici Flessibili. He helped improve company profits consistently and in 1972 acquired the Gilardini company, of which he became president and CEO until 1976.
Carlo De Benedetti left Italy to return to Switzerland in 1975, owing to possible terrorist threats during the Anni di Piombo period of Italian domestic terrorism.
For a brief period, from May 4 to August 25, 1976, he was appointed CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of FIAT
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
. His resignation from Fiat was caused, according to De Benedetti, by his decision to lay off 65,000 workers, which was refused by Fiat head Gianni Agnelli
Gianni Agnelli
Giovanni Agnelli , better known as Gianni Agnelli , was an Italian industrialist and principal shareholder of Fiat. As the head of Fiat, he controlled 4.4% of Italy's GDP, 3.1% of its industrial workforce, and 16.5% of its industrial investment in research...
; other sources say that he was suspected of trying to build up a takeover of power within the company, with the backing Swiss financial groups.
In November 1976, De Benedetti acquired the CIR Group
CIR Group
CIR Group is the industrial holding company of the De Benedetti Group, controlled by COFIDE — Gruppo De Benedetti, the financial holding company of the De Benedetti family....
, thereby also obtaining control of the national newspaper La Repubblica
La Repubblica
la Repubblica is an Italian daily general-interest newspaper. Founded in 1976 in Rome by the journalist Eugenio Scalfari, as of 2008 is the second largest circulation newspaper, behind the Corriere della Sera.-Foundation:...
and the newsmagazine L'Espresso
L'Espresso
l'Espresso is an Italian newsmagazine. It is one of the two most prominent Italian weeklies, the other being Panorama. Since the latter has been acquired by right-wing tycoon and politician Silvio Berlusconi, l'Espresso enjoys the reputation of being the main politically independent newsmagazine...
. In 1978 he became CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the Italian manufacturer Olivetti
Olivetti
Olivetti S.p.A. is an Italian manufacturer of computers, printers and other business machines.- Founding :The company was founded as a typewriter manufacturer in 1908 in Ivrea, near Turin, by Camillo Olivetti. The firm was mainly developed by his son Adriano Olivetti...
, where he remained until his resignation in 1996. As president of Olivetti, since 1983, he quickly and ruthlessly reorganized the company, switching its focus from mechanical typewriters to computers.
In the 1980s, along with other leading business figures, he founded the European Round Table of Industrialists
European Round Table of Industrialists
The European Round Table of Industrialists was born out of a growing preoccupation with thestate of the European economy in the early 1980s. Frequently diagnosed as “eurosclerosis”, the...
, of which he was vicepresident until 2004. In 1985 he became a member of the European Advisory Committee of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
.
In 1995 De Benedetti founded the telecommunications companies Omnitel
Omnitel
Omnitel is one of the largest telecommunication companies in the Baltics, member of TeliaSonera group. It provides services of carrying and packaging of voice, images, data, information, transactions and entertainment....
and Infostrada.
In 1997 he created the Gruppo Editoriale L'Espresso
Gruppo Editoriale L'Espresso
Gruppo Editoriale L'Espresso S.p.A. is an Italian Media conglomerate, founded in 1955 and based in Rome, Italy and listed on the Italian Stock Exchange.- Shareholding :* CIR Group - 50,852%* Carlo Caracciolo - 10,008%...
(L'Espresso Editorial Group), by merging the L'Espresso
L'Espresso
l'Espresso is an Italian newsmagazine. It is one of the two most prominent Italian weeklies, the other being Panorama. Since the latter has been acquired by right-wing tycoon and politician Silvio Berlusconi, l'Espresso enjoys the reputation of being the main politically independent newsmagazine...
and La Repubblica
La Repubblica
la Repubblica is an Italian daily general-interest newspaper. Founded in 1976 in Rome by the journalist Eugenio Scalfari, as of 2008 is the second largest circulation newspaper, behind the Corriere della Sera.-Foundation:...
editorial groups. Carlo Caracciolo
Carlo Caracciolo
Don Carlo Caracciolo di Castagneto was the 9th Principe di Castagneto, 4th duca di Melito and an Italian publisher. He created Gruppo Editoriale L’Espresso, one of Italy's leading publishing groups...
was appointed president of the group. However, Carlo De Benedetti assumed the presidency in 2006, after the death of Caracciolo. On January 26, 2009 at a press conference, De Benedetti announced his decision to retire from all his executive positions in the CIR group, keeping only - at the request of the Board of Directors - the position of Chairman of the Espresso Group. All the executive positions in the CIR group were given to the current Chief Executive, Rodolfo De Benedetti
Rodolfo De Benedetti
Rodolfo De Benedetti is an Italian entrepreneur and company executive, Chief Executive of the CIR Group .- Biography :...
.
The SME affair
In 1985, Romano ProdiRomano Prodi
Romano Prodi is an Italian politician and statesman. He served as the Prime Minister of Italy, from 17 May 1996 to 21 October 1998 and from 17 May 2006 to 8 May 2008...
, then president of the state-owned IRI
Istituto per la Ricostruzione Industriale
The Istituto per la Ricostruzione Industriale was an Italian public company set up by the fascist government in 1933 to combat the effects of the global depression on the Italian economy...
(Institute for Industrial Reconstruction), tried to sell the IRI share in SME (a former state-owned agency later turned food industry conglomerate) to De Benedetti, who was then president of Buitoni (a food industry belonging to the CIR group), for 497 billion Italian lira
Italian lira
The lira was the currency of Italy between 1861 and 2002. Between 1999 and 2002, the Italian lira was officially a “national subunit” of the euro...
. Other offers for SME included most notably one for a joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
with Fininvest
Fininvest
Fininvest is a financial holding company controlled by Silvio Berlusconi's family and managed by Silvio Berlusconi's eldest daughter Marina Berlusconi.-Structure:...
, a media group owned by entrepreuner and former Italian prime minister Silvio Berlusconi
Silvio Berlusconi
Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
. The sale to De Benedetti was later blocked by the then Italian prime minister Bettino Craxi
Bettino Craxi
Benedetto Craxi was an Italian politician, head of the Italian Socialist Party from 1976 to 1993, the first socialist President of the Council of Ministers of Italy from 1983 to 1987.-Political career:...
, and SME remained state-owned until almost 10 years later.
De Benedetti brought IRI to court in an attempt to appeal the block, but the court, presided over by judge Filippo Verde, denied his case in 1986. In 1995, Silvio Berlusconi
Silvio Berlusconi
Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
, Cesare Previti
Cesare Previti
Cesare Previti is a former Italian politician.-Biography:Born in Reggio Calabria, he grew up in Rome, where he started practicing law. In 1971 he became acquainted with Silvio Berlusconi, the construction magnate, later to be media mogul and Prime Minister of Italy...
and Attilio Pacifico were accused of having bribed Filippo Verde and Renato Squillante to fix the trial against De Benedetti. Berlusconi was later acquitted.
According to Der Spiegel
Der Spiegel
Der Spiegel is a German weekly news magazine published in Hamburg. It is one of Europe's largest publications of its kind, with a weekly circulation of more than one million.-Overview:...
on June 7, 2011, Berlusconi was found guilty of bribery and ordered to pay 560 mill. Euro to CIR.
Tangentopoli
In 1993, during the Mani PuliteMani pulite
Mani pulite was a nationwide Italian judicial investigation into political corruption held in the 1990s. Mani pulite led to the demise of the so-called First Republic, resulting in the disappearance of many parties. Some politicians and industry leaders committed suicide after their crimes were...
(Clean Hands) political-corruption investigations, Carlo De Benedetti was arrested and admitted to having paid a 10 billion Italian lira bribe to government parties, to obtain a purchase order from the Italian Postal Service
Poste Italiane
Poste italiane S.p.A. is the government-owned postal service of Italy, headquartered in Rome.Besides providing core postal services, Poste Italiane Group offers integrated products, as well as communication, logistics and financial services in Italy....
for obsolete teleprinter
Teleprinter
A teleprinter is a electromechanical typewriter that can be used to communicate typed messages from point to point and point to multipoint over a variety of communication channels that range from a simple electrical connection, such as a pair of wires, to the use of radio and microwave as the...
s and computers. In May of that year, he was officially put under investigation, but De Benedetti never went to trial for this episode, having exceeded the statute of limitations
Statute of limitations
A statute of limitations is an enactment in a common law legal system that sets the maximum time after an event that legal proceedings based on that event may be initiated...
.
The Banco Ambrosiano
De Benedetti became deputy chairman of the Italian bank Banco AmbrosianoBanco Ambrosiano
Banco Ambrosiano was an Italian bank which collapsed in 1982. At the centre of the bank's failure was its chairman, Roberto Calvi and his membership in the illegal Masonic Lodge Propaganda Due...
in 1981, by acquiring 2% of the capital, but left after only 61 days. In April 1992, Carlo De Benedetti and 32 other people were convicted of fraud by a Milan court in connection with the collapse of the bank. Benedetti was sentenced to six years and four months in prison, but the sentence was overturned in April 1998, by the Court of Cassation
Court of Cassation (Italy)
The Supreme Court of Cassation is the major court of last resort in Italy. It has its seat in the Rome Hall of Justice.The Court of Cassation exists also to “ensure the observation and the correct interpretation of law” by ensuring the same application of law in the inferior and appeal courts...
.
Politics
Carlo De Benedetti has often been identified with Italian centre left politics. He has a long-standing contrast with Silvio BerlusconiSilvio Berlusconi
Silvio Berlusconi , also known as Il Cavaliere – from knighthood to the Order of Merit for Labour which he received in 1977 – is an Italian politician and businessman who served three terms as Prime Minister of Italy, from 1994 to 1995, 2001 to 2006, and 2008 to 2011. Berlusconi is also the...
, and his L'Espresso editorial group
Gruppo Editoriale L'Espresso
Gruppo Editoriale L'Espresso S.p.A. is an Italian Media conglomerate, founded in 1955 and based in Rome, Italy and listed on the Italian Stock Exchange.- Shareholding :* CIR Group - 50,852%* Carlo Caracciolo - 10,008%...
currently publishes the main centre-left-leaning Italian newspaper (La Repubblica
La Repubblica
la Repubblica is an Italian daily general-interest newspaper. Founded in 1976 in Rome by the journalist Eugenio Scalfari, as of 2008 is the second largest circulation newspaper, behind the Corriere della Sera.-Foundation:...
) and newsmagazine (L'Espresso
L'Espresso
l'Espresso is an Italian newsmagazine. It is one of the two most prominent Italian weeklies, the other being Panorama. Since the latter has been acquired by right-wing tycoon and politician Silvio Berlusconi, l'Espresso enjoys the reputation of being the main politically independent newsmagazine...
). He has been called a "foe of Berlusconi" by the Wall Street Journal.
In October 2005, De Benedetti reportedly offered Benjamin Netanyahu
Benjamin Netanyahu
Benjamin "Bibi" Netanyahu is the current Prime Minister of Israel. He serves also as the Chairman of the Likud Party, as a Knesset member, as the Health Minister of Israel, as the Pensioner Affairs Minister of Israel and as the Economic Strategy Minister of Israel.Netanyahu is the first and, to...
, then the Finance Minister of Israel, the position of Italian finance minister, which Netanyahu declined. De Benedetti later said it had been a joke. Ehud Gol, the Israeli ambassador to Italy, had introduced the men.