Telecom Italia’s shareholders have been advised to vote against Vivendi’s request to appoint four members to the company’s board, it emerged this week.
Proxy advisory firm ISS is recommending that shareholders vote down Vivendi’s proposal at next month’s extraordinary general meeting, Reuters reported on Monday, citing an unnamed source close to the matter.
The newswire did not provide any further details.
However, it noted that Vivendi’s plan to expand Telecom Italia’s board has raised fears amongst funds that the French firm would be over-represented, particularly in light of the telco’s planned share conversion that will see its stake drop below 14%.
Shareholders will also vote on that savings share conversion plan at the EGM on 15 December.
Vivendi has gradually increased its stake in Telecom Italia during the course of this year, building up a 20.03% holding.
It made its request to appoint four new directors, increasing Telecom Italia’s board to 17 members, in mid-November.
Last week the Italian telco announced that its board had agreed to add the proposal to the agenda of the shareholders meeting.
