The chairman of Telecom Italia (TIM), Fulvio Conti, is preparing to step down to pave the way for a revamp of the group's governance, according to unnamed sources cited by Italian daily La Repubblica. The company's board has called a meeting to discuss the matter even though a replacement for Conti has yet to be identified, with current CEO Luigi Gubitosi likely to take over the chairman's powers on an interim basis. The report adds that the board change could also open the way for a conversion of TIM's savings shares into ordinary ones, a move blocked by Vivendi back in 2015.
Two of TIM’s leading shareholders – France’s Vivendi and Elliott Management – have been at loggerheads ever since the US fund seized control of the company’s board of directors in May 2018. Earlier this year Vivendi called for the removal of Conti and four other Elliott-appointed directors on grounds of a “substantial lack of independence”, a motion it revoked just ahead of a shareholders meeting held in March. The shareholders have reportedly sought find a compromise to end their feud via a board reshuffle, with state lender Cassa Depositi e Prestiti (CDP) cited as a potential power broker.
In March CDP raised its stake to around 9.9 percent to become TIM’s second biggest investor, behind Vivendi’s 23.9 percent but ahead of Elliott’s 9.8 percent.
