Telecom Italia (TIM) announced that its former CEO Luigi Gubitosi has agreed a severance package and will be stepping down from the company's board, allowing a successor to be named. The operator also said its board and an ad-hoc committee were still examining KKR’s EUR 33 billion takeover offer and that it would be conducting "a thorough assessment" of the bid before releasing its data to the US fund for due diligence.
TIM added that a review of “other strategic alternatives” is likewise underway with its newly-appointed advisors. According to previous reports, the company’s leading shareholder Vivendi is working with state lender Cassa Depositi e Prestiti (CDP) on an alternative plan to revive the operator that does not rely on KKR. Both plans intend to separate TIM's services from its fixed line assets and would be conditional on support from the Italian government, which has the power to protect companies considered of strategic importance.
In its statement, TIM confirmed that it had agreed a severance package for Gubitosi amounting to around EUR 6.9 million that is due to be settled by 03 January. The former chief executive resigned from his post at the end of November after a clash with Vivendi over strategy and the company’s recent profit warnings, including one issued last week due in part to the underperformance of its partnership with sport streaming platform DAZN.
Initial reports suggested the current chief executive of TIM Brasil and new group general manager, Pietro Labriola, would succeed Gubitosi as soon as the latter vacated his board seat but in its statement TIM said it had hired headhunters Spencer Stuart to come up with a list of candidates. "The board ... is continuing the succession planning process aimed at appointing a new CEO, and it will complete it as quickly as the circumstances allow," said the company.
