The board of Telecom Italia (TIM) has appointed TIM Brasil chief Pietro Labriola has its new CEO, replacing Luigi Gubitosi who resigned in November after losing the backing of the company’s main shareholder Vivendi. A 20-year company veteran, Labriola has led TIM Brasil for three years and has been the group’s general manager for the past two months. "My goal is to drive the group to realise its full potential and maximise the value of our assets in the interest of all our shareholders,” he said in a statement, adding that “the challenges and opportunities ahead will require cohesion among all stakeholders.”
The new chief executive was unanimously approved by TIM’s directors, including state lender CDP, the group’s second-biggest shareholder. His priority will be to evaluate the non-binding takeover offer from US investment fund KKR, which offered EUR 10.8 billion in November for 100 percent of TIM’s shares (EUR 33 billion including debt). In that regard, Labriola last week submitted a preliminary plan to directors that reportedly proposed separating the company’s fixed network assets from its services business.
Earlier this month CDP president Giovanni Gorno Tempini called on TIM to revive a plan to merge its fixed network with that of wholesale only rival Open Fiber, which is 60 percent owned by the state lender. Vivendi was previously said to be working with CDP on a plan to revive TIM that does not rely on KKR but, according to a source cited by Reuters, the US fund could still be involved in the revamp of the group's fixed assets. It already owns 37.5 percent of TIM's last-mile network company, Fibercop.
TIM's board is due to meet again on 26 January to approve the guidelines of Labriola's three-year strategy before a final vote is held on 02 March when the company presents its full-year financial results.
