The companies share price rallied upon news of a potential deal between its two biggest stakeholders
Two of Telecom Italia’s biggest shareholders have agreed to resolve their differences and work together to resurrect the company’s performance.
Telecom Italia’s board has been divided between directors loyal to the company’s biggest shareholder, Vivendi, and those who back US activist investor, Elliott Management.
The company’s share price has plummeted over the past 18 months, as the two factions wrestle for control of the company’s board.
However, Bloomberg reported yesterday that the two shareholders may now be prepared to put their differences aside and work together to try to reinvigorate the company’s performance.
One of the main bones of contention between the two groups has been Elliott Management’s desire to divest TIM’s landline services, spinning it off into an entirely separate entity – a call that Vivendi has vociferously resisted. Sources familiar with the matter told Bloomberg that the US based activist investor may now be prepared to drop this demand.
Neither Vivendi nor Elliott Management have publicly commented on the news.
Telecom Italia’s shares are now trading at €0.48 per share, up from €0.46 earlier this week.
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