Telecom Italia (TI) has announced during a board meeting today that executive chairman Franco Bernabe, who headed the company for the last six years, has handed in his notice.
Vice president Aldo Minucci will chair the rest of the meeting and a further…
Telecom Italia (TI) has announced during a board meeting today that executive chairman Franco Bernabe, who headed the company for the last six years, has handed in his notice.
Vice president Aldo Minucci will chair the rest of the meeting and a further announcement is set to be made after its conclusion.
“The board expressed its gratitude to Franco Bernabe for the great commitment and substantial managerial contribution offered over the years spent guiding the company,” the statement read.
Speculation on Bernabe’s imminent departure has mounted since late September, when Telefonica agreed a deal with other investors in Telco, which owns 22.4% of TI, to increase its stake in the holding company. Bernabe and Telco reportedly disagree on the best strategic options for the Italian incumbent.
TI has been striving to cut its net debt – which stood at €28.8bn (US$38.8bn) as of 30 June – to €27bn (US$36.4bn) by the end of the year.
Bernabe had reportedly been advocating a capital increase of up to €5bn to avoid a credit downgrade to junk status. He told the Italian Senate last month, a day after Telefonica’s planned stake increase was announced, that a capital raise would raise cash more quickly than asset disposals.
TI’s five independent board members have reportedly criticised Telefonica’s move, arguing that the deal would only benefit a few shareholders. The directors are said to be concerned that the Spanish telco may force asset sales, which could harm the long-term future of the company.
Italian Prime Minister Enrico Letta has also expressed concerns about the deal. He was quoted late last month as saying that he was not worried about a Spanish company looking to take control of the incumbent, but went on to described some of Telecom Italia’s assets, such as its network, as “strategic”.
