Telecom Italia (TIM) has announced the reappointment of Amos Genish as its CEO and independent director Fulvio Conti as its chairman after activist fund Elliott succeeded in its bid to take control of the company’s board from leading shareholder Vivendi. In a statement, the operator said Conti, a former TIM manager and CEO of state-controlled utility Enel, would replace Vivendi CEO Arnaud de Puyfontaine as TIM chairman, with head of security Stefano Grassi temporarily assigned powers to manage all assets deemed strategic for national security and defence.
Conti said the board reiterated its full confidence in Amos Genish and his management team in the implementation of the company’s 2018-2020 strategic plan, with Genish confirming his long-term commitment to the transformation of the group. “We are on the right track and have a great management team,” he said, adding that “the complete support of the new board enables us to continue implementing the DigiTIM strategy, which is already bearing fruit and delivering the value TIM is capable of creating.”A total of 49.84 percent of the shareholders present at a shareholder meeting held on 04 May voted in favour of Elliott’s list of independent industry veterans, while 47.18 percent voted in favour of Vivendi’s list, meaning Italian state lender Cassa Depositi e Prestiti (CDP) – with a recently-acquired stake of 4.78 percent and its support of Elliott’s list – played a key role in tipping the balance toward the activist fund. Elliott’s list of independent directors now accounts for two-thirds of the 15-strong board, with Vivendi remaining TIM’s largest shareholder with a stake of 24 percent and 5 directors, including de Puyfontaine.
In its own statement, Elliott reiterated its full support for Genish and said it looked forward to constructive dialogue and thoughtful consideration by TIM's independent board and management team of its various proposals. These included a return to dividend payments, the possible sale of TIM's soon-to-be-created network company Netco as well as the potential for a savings share conversion. “TIM's newly elected independent board can now properly consider these measures and more without the disproportionate influence from a single shareholder,” said Elliott.
