Incumbent Telecom Italia has approved a slate of 12 board members proposed by majority shareholder Telco, excluding candidates put forward by 5% shareholder Findim.
Telco, an investment vehicle comprising Spanish incumbent Telefonica and Italian…
Incumbent Telecom Italia has approved a slate of 12 board members proposed by majority shareholder Telco, excluding candidates put forward by 5% shareholder Findim.
Telco, an investment vehicle comprising Spanish incumbent Telefonica and Italian financial firms Mediobanca, Intesa Sanpaolo and Assicurazioni Generali, holds a 22.4% stake in TI.
Back in March, the majority shareholder reportedly decided to replace CEO Franco Bernabe with Marco Patuano, head of the company’s domestic operations, to boost the company’s sluggish operations in Italy. The plan would see Bernabe appointed to the role of executive chairman.
The board appointments, which include 12 representatives of Telco and three suggested by asset management association Assogestioni, are set to be ratified today.
However, Findim, which is owned by the Fossati family, has reportedly raised concerns over Telco’s influence on TI. At a shareholders meeting yesterday, the investment vehicle voted against approving the operator’s 2010 results, but was outvoted by other investors. This resulted in its proposed candidates being excluded from TI’s board.
Findim has been a long-term critic of TI’s management, and in late 2009 Marco Fossati, whose family owns the investment group, threatened to sell the stake because of disagreements with its divestment strategy.
TI’s new board will hold their positions for three years until the approval of its financial statements at 31 December 2013.
The company’s spokeswoman was unable to comment.
