Activist hedge fund Elliott won a
showdown with controlling stakeholder Vivendi at a meeting of
shareholders of Telecom Italia (TIM) on Friday.
Elliott's list won the most votes and landed 10 seats on the
board, with Fulvio Conti, Alfredo Altavilla and Luigi Gubitosi
coming in, among others.
French entertainment group Vivendi is now in a minority
position with five representatives.
Elliott revealed that it had a 9% stake in the former Italian
monopoly operator earlier in the year, saying it wanted to
revamp the board and increase shareholder value.
"Today's win for the independent slate sends a powerful
signal to Italy and beyond that engaged investors will not
accept substandard corporate governance, paving the way for
maximising value creation for all TIM's stakeholders," Elliott
said in a statement, adding that it fully backed CEO Amos Genish
and his business plan.
"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 Italian government's investment holding, Cassa Depositi e
Prestiti SpA, took up a 5% stake in April on the grounds of
Telecom's strategic importance.
Vivendi, which is owned by French financier Vincent Bollorè
and controls 24.9% of Telecom, said it does not intend to pull
out of the Italian telecom firm after the defeat.
Vivendi Communications Director Simon Gillham said the
French group will "support Genish and his long-term industrial
strategy.
"We will be very attentive and watchful so that the strategy
does not change," Gillham added.
Fulvio Conti, who is now considered Telecom's president in
waiting, expressed delight.
"Now it's a real public company," Conti said.
"I'm satisfied".
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