AT&T; reportedly will spin off its computer firm.

The company labeled as “absolutely untrue” speculation that it was getting ready to put its loss-plagued computer operations into a separate firm jointly owned with Olivetti, its Italian computer partner. A Business Week report said the new company would also assume Olivetti’s U.S. operations. AT&T; owns 23.5% of the Italian firm, which supplies AT&T; personal computers and relies on the $36-billion U.S. giant for its American distribution.