Vivendi move to drop board reshuffle bid 'courageous' - TIM CEO

News General Italy 1 APR 2019
Vivendi move to drop board reshuffle bid 'courageous' - TIM CEO
The chief executive of Telecom Italia (TIM) Luigi Gubitosi described the decision of leading shareholder Vivendi to withdraw its proposal to replace five board members at the Italian operator as “courageous” and a first move towards peace. US fund Elliott seized control of the board of directors in May, when ten of its proposed independent candidates were appointed, together with five Vivendi-nominated directors, in a 15-strong board. However, Vivendi subsequently called for the removal of TIM chairman Fulvio Conti and four other Elliott-appointed directors on grounds of a “substantial lack of independence” and for conspiring to replace TIM CEO Amos Genish, a former Vivendi executive, a motion it revoked just ahead of the 29 March shareholders meeting.

TIM confirmed that Vivendi’s offer to withdraw its board reshuffle vote had been approved by 95 percent of shareholders present. “Vivendi wishes that TIM’s board be more reflective of the company shareholder base and be led in an independent, transparent and fully inclusive manner,” said Caroline Le Masne De Chermont, a Vivendi representative, at the meeting, according to Reuters. “I believe that Vivendi has much to give to TIM and TIM to Vivendi,” added Gubitosi according to website Key4Biz, while chairman Fulvio Conti described Vivendi as “an important and indispensable shareholder for the future of the company.”

State lender Cassa Depositi e Prestiti (CDP), which recently raised its stake to 9.9 percent to become TIM’s second biggest investor, could now act as a power broker between Vivendi and Elliott. Unnamed sources cited by Reuters suggest TIM could appoint a more balanced board with a chairman named by the CDP. 

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General

Companies:

TIM,  Telecom Italia,  Vivendi

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Italy

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Shareholders & subsidiaries, Corporate strategy

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