The board of Italy's incumbent telecoms operator, Telecoms Italia (TIM), has thrown its weight behind current CEO, Luigi Gubitosi, ahead of a boardroom showdown scheduled for later this month. The TIM boardroom is split between directors representing the company's largest shareholder…
The board of Italy's incumbent telecoms operator, Telecoms Italia (TIM), has thrown its weight behind current CEO, Luigi Gubitosi, ahead of a boardroom showdown scheduled for later this month. The TIM boardroom is split between directors representing the company's largest shareholder, Vivendi, and those representing the interests of US activist fund, Elliott Management.
Luigi Gubitosi replaced Amos Genish as CEO of Telecom Italia in November 2018, as TIM looked to quell the growing rift in its boardroom. However, Gubitosi and TIM's chairman Fulvio Conti have been accused by Vivendi of ignoring corporate governance guidelines in order to side with the Elliott Management agenda.
However, TIM's board of directors issued a statement last night, giving Gubitosi their full support.
"The revocation of the powers of Mr Amos Genish was consequent on a gradual loss of faith in his capacities to effectively tackle the market conditions, as resulted from the circumstance that the strategic plan he himself had pursued was not giving the expected results, to the point of forcing the Company to first carry out a significant writedown of its goodwill and then issue a profit warning," a company spokesperson said.
"The attribution of powers to Mr Luigi Gubitosi represented, and represents, the best possible solution for the Company and for all its Shareholders, also taking account of the need to minimise the risks deriving from the continuation of periods of uncertainty. The Board therefore reaffirms its full confidence in the work of Mr Luigi Gubitosi."
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