Telecom Italia: Elliott wants six directors to leave
(CercleFinance.com) - Shares in Telecom Italia were unchanged on Friday despite activist investor Elliott asking the Italian telecoms group to dismiss six board members, including executive chairman Arnaud de Puyfontaine, replacing them with six other directors.
The request is to supplement the agenda of the shareholders meeting, scheduled for 24 April.
In a press release last week, Elliott said it has spent "significant time and resources" in recent months analysing the company and its strategic alternatives.
In Elliott's view, Telecom Italia's governance, valuation, strategic direction and relations with Italian authorities could be improved by replacing certain members with "new, fully independent and highly qualified directors."
The fund currently owns 3% of Telecom Italia shares.
Vivendi, the largest shareholder of Telecom Italia, with close to 25% of the share capital, said it would examine Elliott's request "with an open mind", but noted it was not sure that the plan to "dismantle the group and destabilize the teams will create value".
Shares in Telecom Italia are currently up 0.1% at 0.8 euro in Milan.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The request is to supplement the agenda of the shareholders meeting, scheduled for 24 April.
In a press release last week, Elliott said it has spent "significant time and resources" in recent months analysing the company and its strategic alternatives.
In Elliott's view, Telecom Italia's governance, valuation, strategic direction and relations with Italian authorities could be improved by replacing certain members with "new, fully independent and highly qualified directors."
The fund currently owns 3% of Telecom Italia shares.
Vivendi, the largest shareholder of Telecom Italia, with close to 25% of the share capital, said it would examine Elliott's request "with an open mind", but noted it was not sure that the plan to "dismantle the group and destabilize the teams will create value".
Shares in Telecom Italia are currently up 0.1% at 0.8 euro in Milan.
Copyright (c) 2018 CercleFinance.com. All rights reserved.