French media giant Vivendi has slammed the performance of Telecom Italia (TIM) since activist fund Elliott seized control of the operator’s board in May. In a statement, the company said it’s “deeply concerned by the disastrous management of Telecom Italia” since Elliott took control, describing TIM’s market performance since then as “dramatic.” TIM’s share price has lost 35 percent since May, even though the fund had promised to double it within two years, added Vivendi, which remains largest shareholder with a 24 percent stake.
TIM’s chairman Fulvio Conti strongly rejected Vivendi’s accusations, describing them as “absurd and unfounded”. In a statement, Conti said “the board, in its entirety, has been and still is working to implement the strategic plan put in place by Vivendi since its appointment. ” TIM CEO Amos Genish, appointed when Vivendi controlled the board and subsequently backed by Elliott after he criticised some unidentified directors, is currently trying to implement a three-year turnaround plan focused on a digital transformation and improving the group’s investment grade credit rating.
However, unnamed sources cited by Bloomberg suggest Genish’s job is now at risk because company directors representing Elliott are becoming impatient with his lack of progress. Genish has been resistant to Elliott’s proposals sell a stake in towers company Inwit and fully spin off the company’s fixed network, said the sources, adding that Vivendi is more focused on winning back control of the board than on protecting Genish’s job.
Genish, who recently acquired 1 million TIM shares at 52.34 cents each, is due to face directors next Monday to discuss bidding in Italy’s 5G frequencies tender but Elliott-backed directors intend to take the opportunity to confront the CEO on the company’s strategy and stock performance, said the report.
