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Telecom Italia loses CEO in board battle after KKR offer



FILE IMAGE.  Tim's logo is seen at his headquarters in Rome, Italy


© Reuters/YARA NARDI
FILE IMAGE. Tim’s logo is seen at his headquarters in Rome, Italy

By Elvira Pollina

MILAN, Nov 26 (Reuters) – Telecom Italia (TIM) lost its fourth chief executive in six years on Friday after Luigi Gubitosi stepped down after a clash with top investor Vivendi, two sources close to the matter said.

Gubitosi resigned his responsibilities on Thursday, saying in a letter accessed by Reuters that he did not want to get in the way of the board to quickly consider a $ 12 billion acquisition proposal from the US fund KKR.

TIM’s board of directors handed over Gubitosi’s powers to president Salvatore Rossi in a meeting on Friday, while TIM Brazil president Pietro Labriola was appointed CEO, the two sources said.

The board of directors of Italy’s largest telecommunications company also discussed the threat to earnings from a soccer rights deal that has not helped revenue and has contributed to two earnings warnings.

TIM’s disappointing results have strengthened Vivendi’s wishes to remove Gubitosi, who had been hired by TIM’s rival investor Elliott, from office in 2018.

Gubitosi has not resigned as a director, the sources said, preventing Labriola from joining the board and being appointed CEO. (1 dollar = 0.8874 euros)

(Additional report and written by Valentina Za. Edited in Spanish by Rodrigo Charme)

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