Telecom Italia SpA logo

TIT - Telecom Italia SpA News Story

€0.4 0.0  0.5%

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

UPDATE 1-TIM board meeting could set CEO on road to new term -sources

Wed 20th January, 2021 8:22pm
(Update with TIM statement after board meeting)
    By Elvira Pollina and Giuseppe Fonte
    MILAN, Jan 20 (Reuters) - Italy's biggest phone group,
Telecom Italia (TIM)  TLIT.MI , on Wednesday started work on a
plan that could keep Chief Executive Luigi Gubitosi in his role
when it names a new board this year, two sources familiar with
the matter said.
    The group's outgoing board, whose three-year term is coming
to an end, started discussions to draft a slate of board
nominees which it must file at the beginning of March, in time
for shareholders to vote upon on March 31, the group said.
    TIM has picked headhunter Egon Zehnder to help with the
board's selection process.
    The slate of nominees is part of a plan supported by Italy's
government, which holds 10% in the group through Cassa Depositi
e Prestiti (CDP), and French media giant Vivendi  VIV.PA , which
is TIM's top investor with a 24% stake. urn:newsml:reuters.com:*:nL8N2IB4SV
    "The idea is that the board would put forward its own list
and Gubitosi's name would be on it," one of the two sources
familiar with the matter said. 
    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.
    However, all the board members, including Vivendi's
representatives, agreed with the board's decision to present its
own list of candidates, TIM said.
    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.
    He has 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.
    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 and John Stonestreet)
 ((elvira.pollina@thomsonreuters.com;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.