Former Telecom Italia CEO resigns from company board

FILE PHOTO: The TIM logo is seen at its headquarters
FILE PHOTO: The TIM logo is seen at its headquarters in Rome, Italy November 22, 2021. REUTERS / Yara Nardi / File Photo

December 18, 2021

By Elvira Pollina

MILAN (Reuters) -Telecom Italia (TIM) said on Friday former Chief Executive Officer Luigi Gubitosi has resigned from the company’s board, removing a barrier that has kept Italy’s biggest phone group from placing orders. name for his successor.

The boardroom crisis has hampered the team’s response to a $37 billion approach from US private equity fund KKR, which is awaiting access to TIM’s data before placing a major bid. awake.

TIM says it is conducting a “thorough review” of bids but is also “looking at other strategic alternatives … to decide, among other things, whether to allow access to appraisal requested by KKR.”

TIM also said the search for a new CEO continued, but gave no indication of when a new boss might be appointed.

KKR’s offer is conditional on backing from the company’s board of directors and the Italian government, but TIM’s largest shareholder Vivendi says it does not reflect TIM’s values.

The French media group is working on an alternative plan, sources previously said.

Both strategies envisage separating TIM’s services from its infrastructure assets, which require investments to be upgraded as part of a billion-dollar digital push. USD of the country.

Stimulation PACK

The agreement with TIM to provide Gubitosi with a severance package of around 6.9 million euros ($7.8 million) will be settled on January 3, the company said in a statement.

Gubitosi stepped down as CEO last month after coming under pressure from Vivendi and losing the confidence of a majority of board members, following a series of profit warnings.

But Gubitosi did not step down as director of the board, preventing TIM from choosing a new chief executive while it awaited a free board seat.

Last month, TIM named Pietro Labriola, head of its highly regarded Brazilian business, as general manager, and sources say he is expected to be appointed CEO after taking a seat on the board.

But sources familiar with the process said there were divergent views on the board as to who would be the best candidate to secure a stable leadership position over the long term.

TIM hired headhunter Spencer Stuart, which compiled a list of possible CEO candidates.

“The Board of Directors… is continuing the succession planning process to appoint a new CEO, and it will be completed as quickly as circumstances permit,” said TIM.

(1 dollar = 0.8898 euros)

(Reporting and additional writing by Valentina Za, Sneha Bhowmik in Bengaluru, Agnieszka Flak in Milan Editing by Elaine Hardcastle, Rosalba O’Brien and Mark Potter) Former Telecom Italia CEO resigns from company board

Bobby Allyn

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