Vivendi will remain TIM’s biggest shareholder but has lost voting control of the board of directors
Telecom Italia has reappointed Amos Genish as CEO, while Fluvio Conti will take on the role of chairman, after votes were cast at the company’s annual shareholder meeting.
49.84 per cent of shareholders approved a list of board changes proposed by activist shareholder fund, Elliott, wresting control of the company away from the previous incumbent Vivendi. Vivendi’s own list of proposed candidates gained only 47.18 per cent of the support.
The Italian government, who backed Elliott’s list, recently acquired a 5 per cent stake in TIM, tipping the balance in the favour of Elliott.
Fluvio Conti will replace Vivendi’s CEO, Arnaud de Puyfontaine, as chairman of TIM with immediate effect.
“I am honoured by the trust that all the Board of Directors at TIM have shown by appointing me group chairman. Today, we have confirmed our full confidence in Amos Genish and his management team that we will support in the implementation of the 2018-2020 Strategic Plan. My long-term commitment to TIM, along with Amos’ one and his considerable industry experience, aims at further strengthening the Group and creating value for all our stakeholders,” Conti stated.
In a short statement issued to the press, Elliott Advisors said that it looked forward to "constructive dialogue and thoughtful consideration by TIM’s independent management team".
"TIM’s newly elected independent board can now properly consider these measures and more without the disproportionate influence from a single shareholder.
"Today’s landmark vote represents a victory for all shareholders and opens a new chapter for TIM, in which the Company can build upon a foundation of improved governance to secure sustained value creation for all stakeholders," the statement read.
Elliott will be pushing for a return to dividend payments, as well as the potential sale of TIM’s newly formed network offshoot, Netco.
Vivendi will remain TIM’s biggest shareholder, retaining a 24 per cent stake in the Italian firm. Vivendi will also retain 5 directors on TIM’s board.