A list of 10 candidates presented by activist fund Elliott Management has secured two-thirds of Telecom Italia’s board seats following a shareholder vote held on 04 May. A total of 49.84 percent of the shareholders present at the meeting voted in favour of the Elliott list, while 47.18 percent voted in favour of Vivendi’s list. In a statement, TIM confirmed that all 10 of Elliot’s independent directors were appointed, to be joined by 5 Vivendi-nominated directors, including current TIM CEO Amos Genish and Vivendi CEO Arnaud de Puyfontaine, in what will be a 15-strong board. Vivendi's candidates will therefore have to find a way to work with Elliott's nominations following a two-month power struggle.
The new board is set to appoint a chief executive and chairman in the coming days, with Elliott having already confirmed its support for Vivendi-nominated Genish at TIM's 24 April AGM. Genish recently said he would only stay on at TIM if his industrial plan had the full backing of the board. “I am the CEO of Telecom Italia and I am on Telecom Italia’s side. The question is whether or not I have shareholders and a board who stand behind the business plan,” he told the Sunday Telegraph.
Vivendi, which remains TIM’s largest shareholder with a stake of 24 percent, subsequently announced that it would be “extremely vigilant” in ensuring that Genish receives assurance from Elliott-nominated board members that the 2018-2020 industrial plan can be fully achieved. “Vivendi… reaffirms its long-term commitment to the company and will take all measures necessary to preserve its value and avoid its dismantling,” said the French media giant in a statement.
