TIT Telecom Italia SpA

   By Marc Navarro Gonzalez 
 

Elliott Advisors described the resignation of those Telecom Italia SpA (TIT.MI) board members who are affiliated with Vivendi SA (VIV.FR) as a way to delay change at the Italian company.

"Given the momentum behind Elliott's campaign at Telecom Italia to improve both performance and governance, Elliott was not surprised to see yesterday's resignation," the activist fund said on Friday.

Elliott Advisors, the U.K. arm of Elliott Management, has gone into battle with Vivendi, Telecom Italia's main shareholder, to push for changes to the Italian company's board and strategy. Vivendi, however, says it supports the strategy put forward by Telecom Italia's chief executive and has criticized Elliott as taking a short-term view.

Late Thursday, the majority of Telecom Italia's board resigned, forcing a complete reshuffle. Telecom Italia called a shareholders meeting for May 4 to appoint a new board.

Vivendi said the May meeting would allow shareholders "to appoint the board members they want and [determine] which policy to follow."

Another previously planned shareholders meeting is set for April 24.

Elliott, which recently built a stake of over 5% in Telecom Italia, called the move a way "to stall for time." It deemed the resignations "cynical and self-serving," and said they would delay the ability of shareholders to decide on Elliott's proposals for the company.

"This is yet another example of minority shareholder rights at Telecom Italia being abrogated and the continued disregard of corporate governance best practice," Elliott said.

Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com

(END) Dow Jones Newswires

March 23, 2018 08:43 ET (12:43 GMT)

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