Elliott, the US hedge fund, has upped its stake in Telecom Italia to 9 per cent as it continues to put pressure on Vivendi, which controls the Italian telecoms company, ahead of a showdown in May.
The hedge fund said in a statement that it has worked with JPMorgan to increase its holding in Telecom Italia as it continues to agitate against the “poor stewardship” of the Vivendi-controlled board which has been in place since last year.
Shareholders will vote for a new board on May 4 with Vivendi, which has a 24 per cent stake, and Elliott both submitting their nominations for a new Telecom Italia board. Italian state fund CDP is also building a stake of 5 per cent to ensure it has a say in the long term governance of the former government owned telecoms operator.
Elliott has already posted a slate of Italian establishment figures to be put on to the Telecom Italia board and is expected to add four more names by the end of Monday, the deadline for nominations.
Amos Genish, the chief executive of Telecom Italia, leads Vivendi’s nominations. He has detailed a growth plan since he joined last year to restore dividend payments, improve cash flow and separate the company’s network into an independent company still controlled by Telecom Italia.
Telecom Italia shares were flat at 85c.