Rearguard battle

23 March 2018 By Lisa Jucca Follow @LJucca

The sudden resignation of eight Vivendi-backed directors triggers a full board reshuffle at the Italian telecom. The move makes it harder for Elliott to install its preferred candidates. But the activist could still get some of what it wants by aligning with Italian funds.

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Most of Telecom Italia's (TIM) board resigned on March 22, triggering a full board reshuffle.

The eight Vivendi-backed directors who resigned include TIM Executive Chairman Arnaud de Puyfontaine and Executive Deputy Chairman Giuseppe Recchi. Vivendi is Telecom Italia’s top investor with 24 percent of shares.

The move pre-empts a request by activist investor Elliott Advisors to replace six Vivendi-backed directors at TIM in what it says is an attempt to improve the Italian telecom group’s strategy, value and governance.

Shareholders will vote on a new board on May 4.

Elliott owns nearly 6 percent of TIM through direct ownership of shares and derivatives contracts, according to the latest available filings.

Shares in Vivendi were down 0.6 percent at 21 euros by 0850 GMT. Telecom Italia shares were down 0.18 percent at 0.78 euros.

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