Telecom Italia urged to call board meeting to name Vivendi candidate

Le logo Telecom Italia (TIM)Le logo Telecom Italia (TIM). Photo prise le 3 mai 2022/REUTERS/Dado Ruvic

MILAN, May 20 (Reuters) – Telecom Italia (TIM) (TLIT.MI) is being urged by some directors to hold an extraordinary board meeting to name a candidate sponsored by top investor Vivendi (VIV.PA) to fill a vacant director seat at the former phone monopoly, two sources said on Saturday.

Vivendi is currently at loggerheads with TIM's management over its plans to revamp Italy's biggest phone company's domestic business through the sale of its prized landline grid.

Some TIM directors sent a letter on Friday to urge the company to call a meeting as early as next week to select Luciano Carta to fill a vacant seat on the board, the sources said.

The nomination of Carta, a former chairman at Italian defence group Leonardo, is being sponsored by Vivendi.

TIM and Vivendi declined to comment.

One of the sources said Telecom Italia's nomination committee will start a review of Carta's candidacy on Monday, adding no board meeting has yet been called.

The board seat has been vacant since January when Vivendi Chief Executive Arnaud de Puyfontaine quit the board asking for a new governance set-up.

The French group, which owns a 24% stake in TIM, has called into question Chief Executive Pietro Labriola's plan to turn around the debt-laden company, centred on the sale of the grid.

TIM has set a deadline of June 9 to receive improved offers from rival suitors KKR (KKR.N) and a consortium comprised by Italian state lender CDP and Macquarie (MQG.AX) for the grid.

In their latest bids, KKR and the rival consortium offered 21 billion euros ($23.12 billion) and 19 billion euros, respectively, for the asset, source have previously said, some 10 billion euros below Vivendi's price tag to back a deal.

TIM directors are expected to discuss the bids at an ordinary board meeting due on June 22.

($1 = 0.9084 euros)

  • article with galleryLifestylecategoryScorsese's eagerly awaited 'Killers of the Flower Moon' premieres at CannesMay 20, 2023 . Updated undefined ago
  • article with galleryWorldcategoryNo joke: China's backlash against stand-up stirs fear of comedy clampdownMay 20, 2023
  • article with galleryLifestylecategoryJulianne Moore, Natalie Portman anchor Cannes competitor 'May December'May 20, 2023
  • article with galleryLifestylecategoryCate Blanchett dons habit in Australian director's conversion taleMay 20, 2023


Related posts

Oil prices climb on strong U.S. crude exports, China fears linger

Cynthia Danforth

India’s Go First backs emergency arbitration in Pratt & Whitney dispute

Cynthia Danforth

Investor group launches campaign to help companies protect nature

Cynthia Danforth

Leave a Comment