Tuesday, 19 February 2019

TIM issues profit warning as boardroom tensions flare

By Chris Kelly, Total Telecom
Friday 18 January 19

Vivendi and Elliott continue to wrestle for control of TIM's boardroom

Telecom Italia (TIM) has warned of a fall in profits this year, as a spat between its two largest shareholders rumbles on.  TIM reported organic core earnings of $9.2 billion, around a 5 per cent drop on last year's figures…

Telecom Italia (TIM) has warned of a fall in profits this year, as a spat between its two largest shareholders rumbles on. 

TIM reported organic core earnings of $9.2 billion, around a 5 per cent drop on last year's figures. 

TIM has been embroiled in a boardroom power struggle between French firm Vivendi and activist investor fund Elliott. 

“We are very, very angry because there’s been a lot of time wasting since Elliott took over ... we are concerned there is no plan in place and they are putting the blame on the previous management,” a spokesman for the French media group said.

Following a fractious, six-hour board meeting in Italy, TIM's chairman Fulvio Conti hit back against Vivendi's allegations.  

"Vivendi is always able to surprise me, ascribing me powers I do not have. Truth is, I am chairman of a board of directors that has a significant presence of Vivendi-appointed members (including the Vivendi CEO), along with nine members – including me – with renowned standing that have complete autonomy of judgement.  

TIM's shareholders are set to vote again on the 29th of March on Vivendi's request to replace five of the Elliott appointed directors. Vivendi has also said that intends to call another emergency meeting later in the year if financial results do not improve. 

Also in the news:

TIM considers move for BT's Italian assets 

TIM shuffles the managerial pack, with three key appointments

TIM appoints new CEO to steady the ship

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