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TIT - Telecom Italia SpA News Story

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Last Trade - 05/03/21

Sector
Telecoms
Size
Large Cap
Market Cap £5.22bn
Enterprise Value £29.94bn
Revenue £13.61bn
Position in Universe 53rd / 730

TIM board meeting could set CEO on road to new deal-sources

Wed 20th January, 2021 1:53pm
MILAN, Jan 20 (Reuters) - Italy's biggest phone group
Telecom Italia (TIM)  TLIT.MI  will start work on Wednesday on a
plan that could keep Chief Executive Luigi Gubitosi in his role
when it names a new board in April, two sources familiar with
the matter said.
    The group's outgoing board, whose three-year term is coming
to an end, will start discussions at a meeting before drafting a
slate of board nominees which it must file by the end of March
for shareholders to vote upon on April 20.
    TIM is expected to pick a headhunter to help with the
board's selection process and advisory firm Egon Zehnder is in
pole position for the role, the sources said.
    Other sources had told Reuters that Italy's government
backed the idea of a new list of directors submitted by TIM's
board with support from the group's top investors, French media
giant Vivendi  VIV.PA  and state lender CDP.  urn:newsml:reuters.com:*:nL8N2IB4SV
    Vivendi holds 24% of TIM, CDP owns 10%.
    "The idea is that the board could put forward its own list
and Gubitosi's name would be on it," one of the two sources
familiar with the matter said. Both TIM and Vivendi declined to
comment.
    Vivendi's support is crucial for the plan to succeed. 
    Relations between the French group and Italy have been hurt
by Rome's recent decision to pass a law that may curb Vivendi's
interests in the country and strengthen the hand of broadcaster
Mediaset  MS.MI  in a long-running legal battle against Vivendi.
    Gubitosi took the helm at TIM three years ago after activist
fund Elliott won a governance battle against Vivendi, succeeding
in appointing 10 directors out of 15 to the board.
    During his term, Gubitosi has focused on shedding assets to
cut debt, while working on combining TIM's fixed network assets
with those of state backed rival Open Fiber, a project which
Italy sees as crucial to reduce the country's digital divide
with the rest of Europe.
    Gubitosi's appointment is part of a broader compromise the
government is discussing with Vivendi as they attempt to heal
relations and press on with the single-network project, sources
have said previously.   

 (Reporting by Elvira Pollina and Giuseppe Fonte
Editing by Keith Weir)
 ((elvira.pollina@thomsonreuters.com;))
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