The CEO of Telecom Italia has said he would have to reconsider his position if activist fund Elliott prevails in a board battle with the company’s leading shareholder Vivendi in a vote to be held later this week. “If the Vivendi slate does not get the majority of votes, because this is clearly the only slate to support our long-term industrial plan, I firmly believe my position as CEO would be untenable,” said Amos Genish in an interview in the Sunday Telegraph. Elliott holds around 9 percent of TIM’s ordinary shares and has presented a slate of 10 industry veterans for the Telecom Italia board in a bid to shake up the way Vivendi runs the company via its 24 percent stake.
However, the fund confirmed its support for Genish at the 24 April AGM, a vote that Vivendi later said was proof of the Elliott’s “inconsistency” since it didn't fully back the chief executive's business plan and is only seeking short-term financial gains. “The issue for me isn’t about which side I’m on,” said Genish, adding that “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.”Nearly 98 percent of shareholders attending TIM’s recent general meeting backed Genish but on 04 May shareholders have to elect an entire new board after Elliott’s initial request for board changes at the operator resulted in eight Vivendi-nominated board members resigning a week later, triggering a vote on a full board renewal.
TIM and Elliott subsequently released statements clarifying their respective positions, with both claiming the Sunday Telegraph article was misleading. TIM said the article didn’t reflect the exchange between Amos Genish and the paper and that it was up to shareholders to formally confirm his appointment as CEO on 04 May.
Elliott, meanwhile, reiterated that it fully supported Genish and that there was in fact no alternative to the business plan he submitted. “Elliott and its proposed independent nominees fully support Mr. Genish and are encouraged that Mr. Genish has committed to remain at TIM to execute his plan with the full support of the board of the directors, regardless of its composition,” said Elliott.
