It is a total war between the two largest shareholder of Telecom Italia, the American activist Elliott, and the French group Vivendi. Yesterday Team Leader Amos Genish was disheartened by a board that decided to withdraw its agent to the CEO along with 10 directors represented by Elliott at 7:30 am. Conversely, of course, the five members were cast by a majority shareholder, Vivendi.
After the government announced in favor of the creation of a single player for the network, Genish's explanation, engaged in a trip between China and South Korea, to settle the situation after months of stress. Well Genish said that if the network was under team control, he would favor the project. This is the position of Vivendi, and Elliott will have the advantage of stewing the asset after isolating the same thing.
The spin-off should be said to have a countermeasure, the so-called "incentive rate system" (abbreviation "Rab"), which compensates for the capital invested in the network. The definition of the parameters is left to Agcom and Agcom should consider the historical cost of the copper infrastructure. Models are models of other networks, such as gas and electricity. This reorganization will offset the risk of network investment because it will modify the rewards. But Vivendi does not like it because it will lose the government's political "choice" of owning a strategic infrastructure like networking.
As detailed in Tim's management, the delegation was previously delivered to Enel's Fulvio Conti Chairman by Sunday, when the board appointed a new CEO. Paul has a former FCA manager, Alfredo Altavilla, and is an advisor to Rocco Sabelli and Tim Luigi. It may also be called Stefano De Angelis, well done by Tim Brasil. In fact, Genish's withdrawal was actually pending after Tim's General Assembly acknowledged Vivendi's defeat on May 4 and handed the majority to Elliott on the board of the group tlc.
At that time, confidence in Genish was confirmed. But things did not go well. Telecom accounts also worsened due to contingencies such as tariffs changing from 28 to 30 or Iliad, a low-cost operator, entering the mobile market. It is now clear that a collision with major shareholder Elliott about 8% and Vivendi (24.9%) is inevitable. For the French, in fact, Genish's "Torpedo" was "a very cynical move and intentionally secretly planned to destabilize society". And since Genish was a person of Vivendi in Telecom, Breton radar group Vincent Bolloré was able to call the assembly and retry Tim's command.
In Elliott's case, the board is independent and responds to the market. The fund claims that the withdrawal of the proxy is related to the poor results achieved. Genish, meanwhile, said in his statement that he wants to keep the rights of all shareholders and stay on the board to worry about the future of the team. It is like unions fearing investment and declining employment. Conti, on the other hand, ensured "the realization of a new plan to protect the interests of customers, employees, shareholders and all stakeholders while ensuring continuity of management". Yesterday, Tim stock rose 1.4 percent at 0.53 euros.