Telecom Italia: Elliott/Vivendi compromise may see departure of board chairman
A compromise between Telecom Italia's [BIT:TIT] largest shareholders Elliott Management and Vivendi [EPA:VIV] over the future governance and strategy of the telco could involve TIM chairman Fulvio Conti leaving his post, the Italian-language daily Il Sole 24 Orereported. The unsourced report said that Conti's departure would please Vivendi, which holds him responsible for the removal of former TIM CEO Amos Genish.
The article said that in return Genish could resign from the board in a move designed to help Vivendi, which was instrumental in his appointment. The article said that Genish has already been appointed as a senior partner at investment bank BTG Pactual, a development that would make his departure from the TIM board easier.
The item said that Conti may resist any moves to force his resignation because of possible damage to his reputation. The item said that if he resigns, he might not be immediately replaced. The article said that instead his powers cold be transferred to either CEO Luigi Gubitosi or board member Michele Valensise on a temporary basis.
The item added that Genish could be replaced by Generali [BIT:G] chairman Gabriele Galateri.
The article said that if Vivendi and Elliott do reach an agreement it would open the way for Gubitosi to open talks with state-owned financial holding Cassa Depositi e Prestiti (CdP) to take 50% stake in national fibre optic operator Open Fiber. The item said that if this deal goes through, the entire board would be renewed, as CdP would be paid for the stake in TIM stock, making it the largest shareholder in TIM together with Vivendi.
The report said that a compromise could also lead to TIM's savings shares being converted into ordinary shares, a move which both Elliott and Vivendi support.