News
Vivendi exec and former Telefonica Brasil chief Amos Genish reportedly in the frame to replace Flavio Cattaneo.
Telecom Italia’s board will meet on Monday to discuss the expected departure of CEO Flavio Cattaneo.
In a statement late last week, the operator, also known as TIM, said the meeting’s agenda includes the "examination of a proposal of mutual termination of the relationship between the company and Mr Flavio Cattaneo."
Reuters, citing a La Repubblica report on Monday, said Cattaneo fell out with biggest single shareholder Vivendi over its alleged plan to appoint Amos Genish as managing director to work alongside him.
Genish joined Vivendi in January as its chief convergence officer. Before that he was CEO of Telefonica Brasil.
According to a separate La Repubblica report late last week, Vivendi now plans to have three people running TIM: Genish as managing director; Vivendi CEO and TIM chairman Arnaud de Puyfontaine; and deputy TIM chairman Giuseppe Recchi.
The report said Cattaneo will receive a payoff of less than €30 million for leaving before his contract ends in 2020.
Rumours of friction between Cattaneo and Vivendi, which owns 23.94% of TIM, emerged earlier this month. According to a Reuters report, Vivendi called on Cattaneo to soften his approach to dealing with the Italian government in relation to its dispute over rural fibre deployment.
The conflict between TIM and the government stems from a change in strategy by the former regarding ultrafast network deployment in unprofitable, so-called ‘white’ areas of the country.
The government launched tenders aimed to subsidise rollouts in white areas, which were identified via a consultation in which TIM participated.
TIM signed up to the first of three tenders, but then withdrew, opting instead to invest in its own networks. This change of course angered the government because its tenders are supposed to pay for networks in parts of the country where there is no competing infrastructure.
Vivendi is already under heavy scrutiny in Italy due to its stakes in both TIM and broadcaster Mediaset, and is allegedly keen to avoid further antagonising the government.
